Asarco is America's third largest copper producer

Mining giant Vedanta is to buy struggling US copper producer Asarco for $1.7bn (£1.2bn), 35% less than £2.6bn figure first agreed last year.

Vedanta had offered that amount back in June 2008, but the deal subsequently unravelled as global commodity prices slumped in the second half of the year.

Based in the UK, but with most of its operations in India, Vedanta said the deal would boost its US presence.

Asarco has been in US bankruptcy protection since 2005.

Under this US rule, called Chapter 11, a struggling American firm is allowed to continue trading while protected from its creditors.

'Strategic fit'

Despite its troubles, Asarco is the third largest copper producer in the US.

Vedanta said the takeover had been secured through its Sterlite Industries subsidiary.

"This acquisition is in line with our strategy of leveraging our existing skills to become a diversified global copper producer," said Vedanta chairman Anil Agarwal, who also heads Sterlite.

He added that the deal was a "strategic fit".



