Glencore 'would gain much' from Anglo

Glencore CEO Ivan Glasenberg has rebuffed speculation about a possible takeover of Anglo American, saying it is interested only in assets it already trades.

"With Anglo, we don't trade diamonds, if that gives you a good idea, and we don't trade platinum," Glasenberg told reporters in Johannesburg yesterday.

But Glencore, the world's biggest exporter of power-station coal, completed the $29-billion all-share takeover of Xstrata last year to add coal, copper and nickel mines. Anglo American, the largest platinum producer, also controls copper, coal, iron ore, nickel and diamond mines and has a market value of about $36-billion.

Anglo CEO Mark Cutifani is open to takeover offers, the Wall Street Journal reported earlier this week.

"Cutifani said someone's going to take him over. He's happy," Glasenberg quipped.

Jefferies analyst Chris LaFemina said yesterday: "A Glencore bid for Anglo is increasingly possible as the stock widens its outperformance over its smaller rival.

"This outperformance, combined with Glencore's completion of the full integration of the Xstrata acquisition should make Anglo a compelling target for Glencore some time next year," LaFemina said.

"If Glencore offers a significant premium, this could be a compelling deal for Anglo shareholders."

Glencore would greatly increase its trading market share in key commodity markets and gain a strong presence in the seaborne iron-ore market, an ideal market for commodity traders, LaFemina said.