MARKETS

China moves on to Xstrata: report

CONSOLIDATION of mining companies in the big end of town has spurred China to take stakes in take...

Rebecca Lawson
China moves on to Xstrata: report

The Telegraph reported that Glencore has held talks with prospective buyers from Europe, South America and Asia, including the China Development Bank, about buying the company's 34.6% stake in Xstrata.

Any sale of Glencore's majority stake in the diversified miner would derail Vale's attempt to merge with the company.

Sources told the newspaper that Glencore is likely to support a planned tie-up between Xstrata and Vale but that it had held talks, along with advisers from Citigroup, with prospective buyers as a fallback position should Vale fail to offer an attractive bid.

The bank also recently signed a memorandum of understanding with Anglo American to identify and develop a pipeline of natural resource projects in China, Africa and elsewhere.

The latest Xstrata-Vale rumour comes as BHP Billiton's board prepares to meet for the final time ahead of tomorrow's deadline for a possible takeover of rival Rio Tinto.

Some analysts and traders reportedly believe BHP will put its original three-for-one offer on the table, announcing its intentions when it releases its full-year earnings tomorrow.

Others believe BHP will have to increase its bid to appease recent major shareholders Alcoa and Chinalco, which snared a 12% stake in Rio last week.

The Times reported that BHP chief Marius Kloppers was not deterred by the latest Rio share raid, with one source describing it as "just another factor which muddies the water" and said Kloppers wanted to press on with the bid regardless.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production