The unions representing the workers of Asarco LLC and Indian mining company Sterlite Industries Ltd. said Thursday they have reached a collective bargaining agreement to go into effect after Asarco's acquisition.
In May, Sterlite agreed to acquire Asarco's operating assets for $2.6 billion in a cash deal. The pending sale is part of a plan to close Asarco's Chapter 11 bankruptcy case.
The parties also agreed that the current agreement will be extended by three years to 2013. In addition, the bankruptcy judge approved bid protections for Sterlite, including a $52 million break up fee.
Asarco, an Arizona-based mining company, filed for bankruptcy protection in 2005 before the U.S. Bankruptcy Court for the Southern District of Texas, Corpus Christi Division.
Sterlite shares jumped 80 cents, or 5.6 percent, to close at $15.10. The stock has traded between $9 and $28.97 during the past 52 weeks.
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