SYDNEY |
SYDNEY (Reuters) – An $80 billion marriage of commodities trader Glencore and miner Xstrata could lead to a new round of takeovers in iron ore, creating a goliath eager to muscle its way onto one of mining’s richest and most closely guarded industries.
Glencore and Xstrata, which have yet to reach a deal, would together rank as the world’s largest thermal coal exporter, the largest zinc producer and third-largest copper miner — but would remain all but non-existant in iron ore mining.
Xstrata has an open desire to get into iron ore, underlined in 2009 by its attempt to buy mining giant AngloAmerican. But it has been thwarted by a scarcity of major new discoveries and a virtual oligopoly among mining giants Vale, Rio Tinto and BHP Billiton, which have no intention of loosening their grip, say industry players and analysts.
“With a fortified balance sheet thanks to Glencore, it’s a logical move for Xstrata which should light a fire under the others,
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