Glencore raises its bet on zinc by increasing stake in Peruvian miner Volcan Cia Minera
London — Glencore is doubling down on its bet on zinc after prices rallied to a 10-year high. The Swiss commodities giant, already the world’s top zinc miner, is planning to increase its stake in Peru’s Volcan Cia Minera, the largest producer of the metal in Latin America. Glencore reached an agreement to buy out members of the Letts family and acquire 27% of Volcan’s Class A voting shares for $531m. It will offer to increase its stake via a public tender for as much 48%, which could raise the total price to $956m, according to a statement on Tuesday. Volcan’s Class B shares, which are more actively traded, rallied almost 40% in the two weeks leading up to the deal. The stock rose 6.5% to 1.31 Peruvian soles on Tuesday. Glencore’s offer price of $1.215 compares with the current value of the Volcan’s A shares of 3.20 soles, or $0.98. The deal gives Glencore even more exposure to zinc, which has surged on supply cutbacks and China’s tougher curbs on mining. The metal has rallied 27% t...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.