14 Feb Glencore pays $960m for DRC copper and cobalt assets
Glencore (LSE:GLEN) increased its holding in Fleurette Properties subsidiaries with a US$960 acquisition announced yesterday.
The multi-commodity miner purchased a further 31% stake in Mutanda Mining, bringing its interest to 100%, and an approximate 10.25% stake in Katanga Mining.
Taking into account the various loans Glencore has made to Fleurette, the company will have to pay $534 million in net cash for the total transaction.
The deal represents a move by Glencore to dominate Democratic Republic of Congo’s copper and cobalt sectors, where both the purchased companies are located.
Israeli billionaire Dan Gertler, senior adviser to Fleurette, said the group was committed to Congo, where it has operated for two decades, but it was the right time to sell its Mutanda and Katanga assets.
“With the mine now operating at full capacity, we feel now is the right time to exit our investment and to re-invest in further brown and greenfield opportunities,” he said.
Mutanda has been operating at more than 200,000 tonnes of copper per year
In addition to selling its 31% stake in Mutanda for $922 million, Fleurette said it also sold to Glencore its remaining 10.25% shareholding in Katanga for $38 million.