Asarco, a subsidiary of third largest copper producer in the world Grupo México has filed for bankruptcy protection amid asbestos lawsuits. Asbestos companies are facing lawsuits for compensation from victims of asbestos diseases and are getting bankrupt in almost a routine manner. It is unpardonable for the Indian ministry of commerce to and industry to succumb to pressures from the domestic & international asbestos industry even as 50 countries have banned asbestos to safeguard their citizens.
The Vedanta group’s flagship firm, India-based Sterlite Industries has recently submitted a revised bid, which is believed to be $500 million less than its earlier offer of $2.6 billion, citing drop in the metal prices and financial crunch. announced the acquisition of Asarco on 31st May, 2008. Sterlite would become the world’s third largest copper miner with a combined capacity of 650,000 tonnes a year, if the Asarco deal closes.
One wonders whether Vedanta/Sterlite would also be responsible for the asbestos liabilities of the Grupo México's Asarco or the parent company would bear the cost of the damages its subsidiary caused to public health.
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