Today in MetalCrawler, a producer merger deal that was thought to be dead may have found new life, the same as an alumum lawsuit that was thought to be over.
Glencore-Rio Tinto Deal Back On?
The biggest mining deal ever attempted could boil down to a simple ratio: the price of copper versus the price of iron ore.
Glencore PLC, the Swiss mining giant with massive copper holdings, last year proposed a roughly $150 billion merger with Rio Tinto Group PLC, among the world’s biggest producers of iron ore. Glencore’s announcement that Rio rebuffed the bid on Oct. 7 set off a six-month moratorium under UK law from another approach.
That cooling-off period ends on Tuesday, potentially opening the door to more talks. The two miners had never publicly disclosed potential terms, and Rio executives haven’t encouraged new talks.
But two factors have swung in Glencore’s favor that could encourage a deal creating the world’s largest mining company and give investors exposure to every major commodity.
The Wall Street Journal wrote that the continuing decline in iron ore prices and the surprising resurgence in copper prices could put the deal back on the table.
Aluminum Price-Fixing Lawsuit Not Over Yet
A federal judge on Thursday refused to dismiss antitrust litigation accusing a variety of Wall Street banks and commodity merchants of conspiring to drive up aluminum prices by reducing supply.
US District Judge Katherine Forrest in Manhattan said aluminum purchasers may pursue claims against several defendants, including affiliates of Goldman Sachs Group Inc., JPMorgan Chase & Co., Glencore and aluminum warehouse operators. Forrest head earlier dismissed several non-US defendants because she lacked jurisdiction.