Johannesburg - South African-listed miner Metorex [JSE:MTX]
said on Monday Brazil's Vale would not submit a new offer to top a bid to
acquire Metorex by China's Jinchuan Group.
Metorex said in a statement that it would pay Vale a R75.2m
break fee to terminate the agreement. Jinchuan had added around 20% to the Vale
bid, offering over $1.3bn for the copper and cobalt producer.
"The board has received written notice from Vale that
it does not intend to submit an amended Vale offer," Metorex said.
Metorex's share price was down 2.2% in early trade at R8.49.
The Jinchuan offer is a cash bid of R8.90 per share.
The battle for the group is the latest saga in the scramble
for African resources by emerging market giants China and Brazil, which have an
insatiable appetite for raw materials to fuel their growth.
Metorex is seen as a prized asset for a number of reasons,
including exposure to copper and cobalt resources in Zambia and the Democratic
Republic of Congo at a time when the outlook for both commodities is bullish.
The acquisition will also see Metorex delisted from the
Johannesburg bourse.