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High sale price for Las Bambas thanks to Glasenberg's negotiating skills - analysts
April 14, 2014 - 14:39 GMT
Analysts have highlighted the high sale price, as well as Ivan Glasenberg's "strong negotiating skills", following Glencore Xstrata's sale of the Las Bambas copper project to a consortium of Chinese companies.
In April 2013, it was announced that Glencore needed to
sell the stake in the Las Bambas copper project in Peru once it
completed its takeover of mining company Xstrata, as one of the
structural and behavioural conditions it needed to meet to
satisfy the Chinese regulator's requirements. The
consortium buying the project, led by MMG, the international
unit of China Minmetals, paid a total of $5.85 billion for the
project, almost a year after the Chinese Ministry of Commerce
made the sale of Las Bambas a condition for the merger. "[It
was] the high end of the range for a consensus of $5-$6
billion," Liberum Capital analysts said in a note. If Glencore
had not entered into a binding agreement by September 30 2014
or had not concluded the transfer of its ownership interest by
June 30 2015, it would need to bring in...
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Euromoney Institutional Investor PLC.
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