MEXICO CITY, July 23 (Reuters) - Shares in Mexican miner Grupo Mexico rose on Friday after the company said its wants to boost efficiency by fusing units Asarco and Peru's Southern Copper, offering a swap to shareholders in the Peruvian firm.
Southern Copper is one of the world's biggest copper producers and Asarco is the U.S.-based miner that Grupo Mexico pulled out of bankruptcy by winning a drawn-out court battle last year.
New York-traded shares in Southern Copper (SCCO.N) rose 1.3 percent, pulling back from a nearly 5 percent jump in opening trade, while its shares in Peru (SPC.LM) rose 4 percent. Grupo Mexico (GMEXICOB.MX) shares gained 2.96 percent on the Mexican exchange.
Grupo Mexico said in a filing to the local stock exchange that its subsidiary Americas Mining Corp presented a proposal to the board of Southern Copper, recommending Southern Copper shareholders swap their shares for stock in Americas Mining, which controls Asarco.
"We believe the combination of Southern Copper and Asarco under common ownership would provide important synergies including cost reductions in operations and transportation and overhead and capital expenditure savings," Grupo Mexico said.
Southern Copper shareholders would receive 1.237 shares of AMC for each share of Southern Copper, Grupo Mexico said. AMC would own 100 percent of Southern Copper shares after the transaction as proposed by Grupo Mexico.