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12 December, 2005
The United Steelworkers (USW) in Canada has endorsed the mega-mining merger of Inco Ltd. and Falconbridge Inc., two Canadian mining houses that combined would comprise the world’s largest nickel producer.
The C$13 billion friendly takeover was given approval at a USW press conference in Sudbury, Ontario, on 7 December with the announced formation of a Steelworker Inco/Falconbridge Council made up of 8,500 workers at 15 USW bargaining units.
USW said the merged company will be “good for Canada, good for communities and good for building bargaining power across the continent.”
The merger is threatened by a possible hostile bid by Swiss-based Xstrata Plc., the Glencore International-controlled mining giant which purchased a 20% stake in Falconbridge in August. Inco has extended to 27 January its offer to Falconbridge shareholders, who must sell at least two-thirds of the company’s outstanding shares to Inco before the deal becomes final.