17th Mar 2014 10:31
LONDON (Alliance News) - Glencore Xstrata PLC is on the edge of reaching a deal on the multibillion dollar sale of its Las Bambas Peruvian copper project to a Chinese consortium, according to a report in the Wall Street Journal on Monday.
The newspaper said that, according to people familiar with the matter, the mining giant could announce the deal, with a Chinese consortium headed by state-controlled Chinese copper company China Minmetals Corp, as early as Tuesday.
The Wall Street Journal said that the consortium and Glencore are set for a final meeting on Tuesday in London with the aim of signing an agreement over the deal, which is expected to be for more than USD5 billion.
Glencore agreed to sell the Las Bambas property as part of the former Glencore International PLC's acquisition of Xstrata PLC in 2013.
The signing of a deal would end months of negotiations, which were pushed back beyond an internal March 4 deadline, as Glencore and Minmetals struggled to reach an agreement over the pricetag of Las Bambas.
Glencore declined comment to Alliance News on the ongoing sale Monday, but the company announced earlier in March that the disposal process of Las Bambas is ongoing and is committed to be completed by September 30.
Glencore shares were up 3.1% to 306.05 pence, putting it in the top three FTSE 100 risers Monday.
http://online.wsj.com/news/articles/SB10001424052702303287804579444663810714136
By Tom McIvor; [email protected]; @TomMcIvor1
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