Germany – ‘We do have lots of firepower,’ JÃ¼rgen Schachler of leading European copper smelter Aurubis told Reuters during the recent LME Week in London. The businessman hinted at a EUR 1.2 billion ‘war chest’ the company plans to use for acquisitions.
Aurubis is eager to expand its geographical boundaries. At the moment, it is particularly exploring business opportunities in South America, North America and Europe. Acquiring other ventures is a part of the smelter’s new Vision 2025 Strategy.
‘In the United States we won’t have to fight for market share and it’s also a market we are familiar with, which minimises risk,’ Schachler observed.
According to his calculations, Aurubis has a ‘war chest’ that is about three times EBITDA, which is currently around EUR 400 million. By 2020, Schachler expects the acquisition budget could be as high as EUR 1.8 billion.
Speaking about the current state of the scrap market, the businessman noted that market players are well supplied owing to higher prices for copper. This trend will likely result in a ‘slight surplus’ at year-end.
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