Hudbay Minerals agreed on 2 March to acquire Arizona Sonoran Copper Company, the developer of the Cactus copper project in Arizona, in an all-share transaction valuing the target's equity at about $1.48bn.
Why Hudbay Minerals Inc. is buying Arizona Sonoran Copper Company Inc.
Hudbay said combining Cactus with Copper World would create the third-largest copper district in North America and position it as one of few US producers of refined copper cathode. It set out a path to lift annual copper output from about 125,000 tonnes to more than 250,000 tonnes by 2030, with potential to exceed 350,000 tonnes once Cactus is developed, and expects shared infrastructure and teams to yield regional synergies.
Deal terms and financing
ASCU shareholders receive 0.242 of a Hudbay share for each share, implying C$9.35 per share, a 30% premium to the 27 February close and 36% on 20-day volume-weighted prices. Hudbay already held 20.8 million shares, or about 9.99%, and put the enterprise value net of that stake at about $1.28bn. ASCU investors were set to own about 11% of the enlarged Hudbay. The agreement includes a non-solicitation covenant, a matching right for Hudbay and a termination fee payable by ASCU in certain circumstances.
Regulatory approvals and timing
The deal ran as a court-approved plan of arrangement in British Columbia, requiring two-thirds approval of ASCU shareholders and a majority-of-minority vote. Hudbay announced completion on 24 June 2026, after which ASCU shares were delisted from the Toronto Stock Exchange.
Market context
Cactus is a copper cathode project near Casa Grande in Pinal County, Arizona, covered by a pre-feasibility study dated October 2025. ASCU directors and senior officers holding about 1.1% of its voting securities signed support agreements, and ASCU's chair described Hudbay as the third-largest copper producer listed on the New York Stock Exchange.
