Glencore said to withdraw Kazzinc sale after offers fall short
Glencore has abandoned plans to sell its stake in Kazakh mining company Kazzinc after potential buyers failed to match its valuation, people familiar with the situation said.
Glencore had been considering exiting the business, in which it holds a 70% stake, amid interest from Chinese buyers. The company has now sent a termination letter to the bidders, the people said, asking not to be identified discussing a private matter.
A Glencore spokesperson declined to comment.
Kazzinc is made up of a sprawling network of mines, concentrators and metal finishing plants across Kazakhstan that allow the company to go from digging ore to producing finished zinc metal and products. The company was set up in 1997 through the merger of eastern Kazakhstan’s three main non-ferrous metals companies, which were majority government-owned.
Glencore CEO Gary Nagle has continued his predecessor’s strategy of looking to simplify the business, selling off smaller or more challenging assets. The company has already sold zinc assets in Peru, and some of its smaller copper operations.
Zinc prices have rallied this year on the back of supply constraints, but the long-term outlook is clouded by the metal’s heavy exposure to the struggling construction sector. It has also been hampered by the metal’s limited uses in fast-growing industries like renewable energy and electric vehicles.
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