Freeport McMoRan acquires Plains for US$17 billion
Freeport-McMoRan Copper & Gold Inc. (FCX) is to acquire Plains E&P for a total of US$17.2 billion (including debt). In a separate transaction announced on the same day, FCX acquired McMoRan Exploration in a deal that valued the company at US$3.4 billion. This note concerns only the former transaction.Our base-case valuation of the Plains acquisition is US$13.7 billion (NPV10, discounted to January 2013). Against our modelling, the consideration equates to an Implied Long-Term Oil ...