KEY POINTS:
LONDON - Uranium One has agreed to a US$3.1 billion ($4.5 billion) reverse takeover of UrAsia Energy, which has a London listing, creating the world's second largest producer of uranium in a deal triggered by the rising demand for nuclear fuel.
The new company, which will retain the name Uranium One, will have a market capitalisation of US$5 billion, making it second only to fellow Canadian group Cameco.
It will be the only company operating in every one of the world's five largest resource areas - Kazakhstan, South Africa, Australia, the US and Canada. Over half of the world's production of uranium from mines is in Canada and Australia.
Uranium One is listed in Toronto and Johannesburg and UrAsia, also traded in Toronto, listed on London's AIM market last year. Due to a significant number of shareholders being based in London and Europe, the new company is likely to be listed on AIM. However, because of its size it could move on to the main market and edge into the FTSE 100.
One analyst said the need for nuclear energy was creating a "feeding frenzy" around mining.
- INDEPENDENT
