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The Globe and Mail reported on Tuesday that Glencore Xtrata (LSE:GLEN) and Vale SA (NYSE:VALE) are no longer in talks to merge their nickel assets in the Sudbury Basin. The companies were aiming to merge their mines, mills and smelters in the area as a cost saving measure, an issue which is less important at the moment given the strong nickel price.
The Globe and Mail reported on Tuesday that Glencore Xtrata (LSE:GLEN) and Vale SA (NYSE:VALE) are no longer in talks to merge their nickel assets in the Sudbury Basin. The companies were aiming to merge their mines, mills and smelters in the area as a cost saving measure, an issue which is less important at the moment given the strong nickel price.
As quoted in the publication:
The initial talks between the mining giants started after Glencore acquired Xstrata early in 2013. Glencore chief executive officer Ivan Glasenberg had privately said that Xstrata, which controlled a good chunk of the mining infrastructure in Sudbury, had botched previous talks with Vale, sources familiar with the matter said.
But shortly after Vale’s executives announced in November that they would soon begin formal talks with Glencore, skepticism started surfacing over the miners’ ability to move beyond issues that have scuppered previous Sudbury merger talks.
Click here to read the full Globe and Mail article.