For the second time in as many business days, a commodity producer has announced it will buy not one but two of its rivals. On Friday it was in the oil patch, where Anadarko Petroleum (APC) bid for both Kerr-McGee and Western Gas. Today, Phelps Dodge (PD) said it would acquire Inco (N) for C$80.13 per share in cash and stock. Inco in turn raised its existing offer to buy Falconbridge (FAL) to an implied value of C$62.11 per share. Throw in the long-awaited deal between Mittal (MT) and Arcelor (steel) and you have a broad-based commodity stock M&A boom.
Having covered basic materials in the late 1990’s, when the only way to get investors to show up at a conference was to bill it as a B2B play, we can tell you there are more than a few long-suffering analysts who are finally getting their day in the sun.