China Minmetals confirms Las Bambas talks with Glencore Xstrata

19th Mar 2014 10:53

Following much speculation, MMG Limited has confirmed that it is in discussions with Glencore Xstrata over the multi-billion pound disposal of its Las Bambas copper project in Peru.The Melbourne-listed subsidiary of Chinese state-owned resources giant China Minmetals Nonferrous Metals (CMN) said it is part of a consortium of investors, comprising itself, GUOXIN International Investment Corporation Limited and CITIC Metal Co.The announcement follows reports earlier in the week that the two parties were close to a deal."Our analysts believe Las Bambas meets all MMG's acquisition criteria but any transaction will be dependent on price," said analysts at Investec on Wednesday.The proposed disposal of Las Bambas, expected to be valued at more than $5bn, was agreed by Glencore at the time of its merger with Xstrata in May 2013 in an effort to win approval from Chinese regulators."No binding agreement has been reached in connection with the acquisition as of the date of this announcement," MMG said in a statement.BC