(MENAFN- The Peninsula) India's largest maker and exporter of gold, Rajesh Exports, announced yesterday it had bought Swiss metal refining giant Valcambi for $400m in cash.
The Indian firm said it had been undeterred by a recent slump in world gold prices to a five-year-low as it announced the takeover in Mumbai. "This deal will add to Rajesh Exports' earnings. Valcambi is a profitable, cash-surplus, well-run firm with no labour issues," company Chairman Rajesh Mehta told reporters. India vies with China as the world's largest purchaser of gold but sluggish demand, combined with a strong dollar, saw prices fall last week to their lowest level since February 2010.
Mehta said he was confident prices would soon rise again as he stressed that the acquisition of Valcambi, one of the world's largest gold refiners, would give Rajesh Exports a greater presence in international gold markets.
India buys around 900 tonnes of gold every year, with many viewing it as the safest way to invest and protect against inflation.AFP
Gold price fall continues
LONDON: Gold lost ground yesterday, moving closer to last week's 5-1/2 year lows below $1,100 per ounce, with expectations for a near-term US interest rate hike seen keeping momentum firmly with the bears.
Spot gold was down 0.5 percent at $1,092.90 an ounce by 1158 GMT, after falling for a fifth straight week last week, the longest slide since late 2012.
US gold for August delivery was up 0.6 percent at $1,092 an ounce. Bullion lost more than 3 percent last week after a sudden, sharp rout.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.