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Commodity trader Glencore [GLEN.UL] is reported to buy back its Prodeco coal mines from Xstrata (XTA.L) for about $2.5 billion.
Commodity trader Glencore [GLEN.UL] is reported to buy back its Prodeco coal mines from Xstrata (XTA.L) for about $2.5 billion.
The press release is quoted as saying:
Swiss-based Glencore was forced to give up the Prodeco operations last year for $2 billion when it was short of cash, but it got an option to buy them back that expires later today. Glencore may seek a partner to help buy back Prodeco and was holding talks with four possible parties. Negotiations were being held with Brazil’s Vale (VALE5.SA) (VALE.N), U.S. coal miner Alpha Natural Resources (ANR.N), Singapore sovereign wealth fund GIC and U.S. private equity fund First Reserve Corp.