The following video is from Friday's Motley Fool Money roundtable discussion with host Chris Hill and analysts Joe Magyer, James Early, and Ron Gross.
In this segment, Freeport-McMoRan Copper and Gold is buying Plains Exploration and McMoRan Exploration for $9 billion in cash and stock. Joe discusses why he doesn't like the deal. James makes the case for diversification.
After putting together a blockbuster deal to expand into the oil and natural gas industry, Freeport-McMoRan will have plenty on its plate as it tries to adapt to the new industry, as expanding into oil and gas carries plenty of inherent volatility. FCX had a profitable copper business and, on top of this foray into a new industry, it still has to contend with mining industry bellwether BHP Billiton. To find out if Freeport-McMoRan is a buy or a sell, simply click here now to check out the Motley Fool's brand new premium report on the company!
The article 1 Energy Deal to Avoid Right Now originally appeared on Fool.com.
Chris Hill has no positions in the stocks mentioned above. The Motley Fool owns shares of Freeport-McMoRan Copper & Gold. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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