Reuters reported that Noble Group Ltd. (OTC Pink:NOBGF), a trading house, has gained the right to sell some of Nyrstar NV’s (EBR:NYR) zinc output by taking over a deal previously held by Glencore Xstrata plc (LSE:GLEN). The contract is reportedly worth $650 million.
As quoted in the market news:
Around 12 banks and trading firms including traders Trafigura TRAFGF.UL and Louis Dreyfus AKIRAU.UL were in the running to gain rights to sell up to 350,000 tonnes of Nyrstar’s zinc.
The opportunity to market Nyrstar’s zinc had become available because commodity firm Glencore agreed to let go of the deal, which it had signed in 2008, in order to get European Union regulatory approval for its takeover of Xstrata.
Glencore Xstrata will continue to market Nyrstar’s commodity grade zinc produced outside of Europe when the deal ends in January.