Glencore to buy Peruvian copper miner for $475m
Tuesday 19 July 2011
Glencore, the Swiss commodities trading giant, has unveiled plans to increase its influence in the copper market with a $475m (£296.4m) bid to take control of Marcobre, the Peruvian copper mining business.
The group, which became a publicly quoted company with dual London and Hong Kong listing back in May, has agreed to buy CST Mining's 70 per cent stake in the business, which owns the Mina Justa copper project in southern Peru. The deal, which is subject to various conditions, including due diligence by Glencore, is expected to close in October.
"Mina Justa would ideally complement Glencore's existing polymetallic mining operations in Peru, and add significant value to our worldwide group of copper mining assets," the co-director of the trading group's zinc, copper and lead department, Daniel Mate, said.
The deal comes on the heels of signs of consolidation in the wider sector, with the Chinese mining group Jinchuan recently bidding more than $1.3bn to trump an offer from Brazil's Vale for the South African copper and cobalt producer Metorex, whose portfolio includes in the Chibuluma copper mine in Zambia.
Mining analysts at Liberum capital said the Mina Justa deal would see Glencore, which owns around 34 per cent of the FTSE 100-listed mining group Xstrata, shelling out about $0.54 per pound of copper reserve. The Jinchuan bid for Metroex, on the other hand, works out to about $0.94 per pound.
"While the 43 per cent discount reflects the earlier development status of the project, the deal nevertheless looks to be attractively priced for Glencore and fully underscores Glencore's aspirations to realise rapid growth through organic and opportunistic acquisitive growth," they said.
- 1 Forget 'The Dress': Here are five of the biggest news stories you might have missed
- 2 The black and blue dress: Makers considering a white and gold version
- 3 PornHub turns masturbation into energy in bid to save the planet
- 4 The remarkable archaeological underwater discovery that could open up a new chapter in the study of European and British prehistory
- 5 MH370: 'Putin ordered plane to be flown to Kazakhstan space port,' conspiracy theory claims
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
PornHub turns masturbation into energy in bid to save the planet
Ukraine crisis: Top Chinese diplomat backs Putin, says West should 'abandon zero-sum mentality'
White and gold or blue and black – what colour is the dress? An eyewitness gives a definitive answer
Saudi Muslim cleric claims the Earth is 'stationary' and the sun rotates around it
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Aqsa Mahmood branded a 'disgrace' by her parents after claims she recruited three UK girls flying to Middle East
iJobs Money & Business
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...