Hudbay Minerals announced it has agreed to acquire Arizona Sonoran Copper Company Inc. in an all-share transaction valued at approximately $1.48 billion, positioning the company to create one of the largest copper districts in North America.
Under the terms of the agreement, Hudbay will acquire all outstanding shares of Arizona Sonoran that it does not already own. Arizona Sonoran shareholders will receive 0.242 of a Hudbay common share for each Arizona Sonoran share, implying a value of about C$9.35 per share based on Hudbay’s closing price on the Toronto Stock Exchange on February 27, 2026. The offer represents a premium of about 30 percent to Arizona Sonoran’s closing share price on that date and a premium of 36 percent based on the companies’ 20-day volume-weighted average prices.
The transaction will give Hudbay full ownership of the Cactus copper project in Arizona. Combined with Hudbay’s Copper World project, the assets are expected to form the third-largest copper district in North America. The combined development is also expected to significantly expand Hudbay’s domestic copper production capacity in the United States.
Hudbay said the acquisition aligns with its strategy to strengthen its position as a major Americas-focused copper producer and support the growing demand for domestically sourced critical minerals. The company expects the combined development of Copper World and Cactus to help scale annual copper production from roughly 125,000 tonnes today to more than 250,000 tonnes by 2030, with potential to exceed 350,000 tonnes once the Cactus project is fully developed.
The companies also expect operational efficiencies and regional synergies from the staged development of the two projects, including shared infrastructure and integration of project development teams. Hudbay noted that the addition of the Cactus asset is expected to enhance its copper reserves and resources on a per-share basis while expanding its U.S. growth pipeline.
Following completion of the deal, existing Hudbay shareholders are expected to own approximately 89 percent of the combined company, while former Arizona Sonoran shareholders will hold about 11 percent.
The transaction will be completed through a court-approved plan of arrangement and will require approval from Arizona Sonoran shareholders as well as regulatory and stock exchange approvals. A special shareholder meeting is expected to be held in May 2026, and the companies anticipate closing the deal in the second quarter of 2026.
KEY QUOTES
“The acquisition of ASCU is a highly compelling transaction that further enhances Hudbay’s copper growth platform in the U.S. Cactus is a high-quality, large-scale copper development asset in a mining jurisdiction that we know well. Together with the advancement of Copper World, this transaction creates one of the most significant copper districts in North America and reinforces Hudbay’s position as a premier copper growth company, while preserving financial flexibility and delivering long-term value for shareholders.”
Peter Kukielski, President And Chief Executive Officer, Hudbay Minerals
“This transaction delivers ASCU shareholders compelling value today while preserving meaningful exposure to the long-term upside of Cactus. Through ownership in Hudbay, our shareholders will gain immediate exposure to strong cash flow generation from a larger, diversified and well-capitalized operating platform, while continuing to participate in the long-term value of Cactus and adding exposure to Hudbay’s Copper World project as part of a new major copper hub in Arizona. Hudbay’s strong balance sheet, proven track record in Arizona, and disciplined approach to project development meaningfully de-risks the development of Cactus and positions it for long-term success.”
George Ogilvie, President And Chief Executive Officer, Arizona Sonoran Copper Company
“We are delighted to have the opportunity for our Cactus project to be sequenced into Hudbay’s portfolio of long-life and high-quality assets in the Americas. As part of Hudbay, the financial dilution and execution risks of constructing Cactus are significantly lessened, providing a clear path to copper cathode production. More importantly, in joining with Hudbay, we put the project in the good hands of the 3rd largest copper producer listed on the New York Stock Exchange, and in what will become the 3rd largest copper district in North America.”
David Laing, Chair Of The Board Of Directors, Arizona Sonoran Copper Company
