The following video is from Friday's Motley Fool Money roundtable discussion with host Chris Hill and analysts Joe Magyer, James Early, and Ron Gross.
In this segment, Freeport-McMoRan Copper and Gold (NYSE: FCX ) is buying Plains Exploration (UNKNOWN: PXP.DL2 ) and McMoRan Exploration (UNKNOWN: MMR.DL ) for $9 billion in cash and stock. Joe discusses why he doesn't like the deal. James makes the case for diversification.
After putting together a blockbuster deal to expand into the oil and natural gas industry, Freeport-McMoRan will have plenty on its plate as it tries to adapt to the new industry, as expanding into oil and gas carries plenty of inherent volatility. FCX had a profitable copper business and, on top of this foray into a new industry, it still has to contend with mining industry bellwether BHP Billiton. To find out if Freeport-McMoRan is a buy or a sell, simply click here now to check out the Motley Fool's brand new premium report on the company!