Glencore tightens grip on zinc through deal with Canada’s Trevali
In a $400m deal, Glencore is selling 80% and 90% stakes respectively, in a mine in Namibia and in Burkina Faso to Trevali, with which it has a long-standing relationship
London — Miner-trader Glencore has increased its control of core commodity zinc through a deal with Canada’s Trevali, in which it is selling shares in two mines and helping to create the first pure zinc company with wide geographical reach. Glencore’s share price has risen about 13% this year, adding to gains of more than 200% in 2016 when it rebounded from a commodities price crash. Its CEO, Ivan Glasenberg, has said it was well-placed for deals, which analysts said were as likely to involve commodity offtake or tactical disposals as acquisitions. Through a $400m transaction, announced late on Monday, Glencore was selling 80% and 90% stakes respectively, in a mine in Namibia and another in Burkina Faso to Trevali, with which it has a long-standing relationship. Glencore will also increase its direct holding in Trevali from 4% to 25%, and gets two seats on the company’s board, compared with one before, while securing exclusive rights to market Trevali’s zinc. "We are excited to form...
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