Green tremors may rock Sterlite's Asarco bid
Two members of the US House Judiciary Committee are the latest to join the chorus against Sterlite Industries’ proposed acquisition of the US mining firm Asarco.
By ET Bureau |
MUMBAI: Two members of the US House Judiciary Committee are the latest to join the chorus against Sterlite Industries��� proposed acquisition of the US mining firm Asarco. They have asked the US Attorney General to order the Department of Justice to investigate the environmental records of Sterlite, its parent company Vedanta Resources and other firms looking to takeover Asarco. Sterlite���s bid has already been opposed by Asarco���s parent Grupo Mexico and its largest bond holder, Harbinger Capital Partners.
House Judiciary Committee chairman John Conyers Jr and a ranking member Lamar Smith have written a letter to the US Attorney General B Mukasey saying Sterlite is alleged to have a poor environmental record outside the US. ���There have been numerous reports that raise serious questions about Vedanta���s history of compliance with environmental, health and safety laws and regulations.���
The letter was written on Thursday when Sterlite announced it was signing a long-term labour contract with Asarco���s trade unions. ���Given the considerable federal liabilities associated with Asarco, based on its involvement with contaminated sites...we believe that Vedanta���s environmental track record overseas, as well as all relevant environmental factors bearing on the Asarco bankruptcy, should be carefully studied before the department adopts a final position on whether Sterlite or any other bidder should be allowed to acquire Asarco���s assets in the US,��� the letter suggested.
Sterlite has been facing opposition to its $2.6-billion cash bid for Asarco ever since it signed a definitive agreement to acquire the company on May 31, 2008.
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