Hudbay Minerals to buy remaining Arizona Sonoran stake for $1.48 billion

March 2 (Reuters) - Hudbay Minerals HBM.TO, HBM.N said on Monday it will buy the shares it does not already own in Arizona Sonoran Copper Company ASCU.TO for $1.48 billion, as the Canadian miner expands its footprint to capitalize on the growing demand for the red metal.

U.S.-listed shares of Hudbay Minerals fell 1% premarket.

Copper, a key metal for the power and construction industries, is poised to benefit from surging demand driven by electric vehicles and AI infrastructure. Miners have begun to consolidate as countries across the world ramp up efforts to reduce their reliance on China.

Last year, Anglo American and Teck Resources announced a $53 billion all-stock merger to create the world's fifth-largest copper producer.

Hudbay currently holds a nearly 10% stake in ASCU.

Each ASCU shareholder will receive 0.242 of a Hudbay share for each share held, representing C$9.35 per ASCU common share.

The share price offered represents a premium of 29.5% to ASCU's closing price on Friday.

The deal would give Hudbay 100% ownership in the Cactus project, which is expected to be a major producer of copper cathode once it comes online.

The acquisition is also expected to strengthen Hudbay's position by boosting its long-term output profile, expanding its U.S. growth pipeline and increasing exposure to rising demand for domestically produced critical minerals.

The transaction is expected to be completed in the second quarter of 2026, following which Hudbay shareholders will own 89% of the combined company.

Hudbay expects to produce about 92,000 tonnes a year from its Copper World project by 2030 and roughly 103,000 tonnes a year from Cactus thereafter.

($1 = 1.3659 Canadian dollars)