See also: Rio Tinto Fleeing Ivan Glasenberg’s Advances, May Find Sanctuary in Freeport
Ivan Glasenberg, CEO of Glencore Plc (GLEN), is planning to make yet another offer for Rio Tinto Group, the world’s second-biggest miner. He approached Rio in July about a merger, and was rejected, Business Week Reported.
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A five-year low slump in commodity prices in Europe and China was behind Glasenberg’s original bid, and he still wants it. Data shows the resulting $160 billion entity coming out of the merger would capture BHP Billiton Ltd. (BHP) as the largest mining company, with a top-three position in producing energy coal, iron ore, copper, zinc and aluminum.
Top-ranked analyst on Rio Richard Knights of Liberum Capital Ltd. in London, told Bloomberg: “A potential deal would help Glencore materially de-leverage the business. What Glencore would want to do is to wait till next year for iron-ore prices to drop further and the commodity cycle to turn in their favor so that they can launch a bid with a big premium.”
In 2008, Rio rejected a 44 percent premium offered for a takeover by BHP Billiton Ltd.
