According to sources, two companies associated with Chinese state-backed groups are considering bids for Glencore Xstrata PLC. This was estimated to be at US$5 billion for the copper mine located in Peru.
Speculation was rife that bidders were either from Hong Kong-listed MMG Ltd. or Chinalco Mining Corp International. This would mean that this Peruvian asset will end up with a buyer linked to China, who initiated the forced sale in the first place.
Glencore announced that it would sell the Las Bambas project. This was a part of its agreement to the anti-monopoly ministry of China. This also relates to a US$35 billion takeover of Glencore early this year. People who are familiar with the matter said that the two Chinese companies are lining up for the bid and slates to produce 400,000 tons a year of copper production.
China Minmetals Corp controls MMG and is headquartered in Melbourne, Australia.
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