Glencore Rejects Unsolicited Bid for DRC Operations
Miner and commodity trader Glencore has confirmed that it rejected an unsolicited offer for its operations in the Democratic Republic of Congo (DRC) at the end of last year.
“Glencore has not engaged any banks or advisors and is not running a sale process for its operations in the DRC,” a company spokesperson stated in an email.
Earlier, the Financial Times reported that Glencore had considered selling part or all of its Congolese assets and had engaged in preliminary discussions with a potential buyer from the Middle East regarding its copper and cobalt mines. However, Glencore declined to name the buyer when contacted by Reuters.
Following the FT report, shares of the FTSE 100-listed company surged by as much as 4.8%, although they remain down nearly 9% over the past 12 months.
The mining sector has seen increased deal-making activity as companies seek to strengthen their positions in critical metals like copper, which are essential for the global transition to cleaner energy.
Glencore, one of the world’s leading producers of coal and base metals, has previously stated its openness to mergers and acquisitions that create shareholder value.
Last year, the company approached Rio Tinto with a proposal to merge their copper businesses, aiming to form the world’s largest publicly traded miner, but talks collapsed.
This unsuccessful attempt followed BHP’s failed $49 billion bid for Anglo American due to structural concerns. Reports also suggested that Glencore had explored a potential combination with Anglo American after BHP’s approach became public.
Despite the ongoing consolidation efforts in the mining industry, Glencore remains firm in its decision not to pursue a sale of its DRC assets at this time.
