Glencore Xstrata and OZ Minerals deal unlikely, says banker

30th Sep 2013 07:27

Reports that Glencore Xstrata has acquired a stake in OZ Minerals were discounted on Monday after a banker who is familiar with both companies said it was an unlikely deal. The Mail on Sunday reported that Glencore had bought up to 10% in OZ Minerals.However, OZ Minerals on Monday dismissed the report, saying it had not received an offer from Glencore or any notice from shareholders. A banker who knows both Glencore and OZ Minerals well told Reuters he doubted Glencore would want to buy into OZ Minerals as it is trying to conserve cash. He said even if OZ Minerals was sold cheap, the company was not a good fit.OZ Minerals owns the Prominent Hill copper mine in South Australia where costs are rising as its mine life runs out. Another asset is the undeveloped Carrapateena deposit in South Australia. The banker noted that Glencore is trying to selling off undeveloped copper assets and has said it was not looking to invest in new mines."There's no obvious synergy," the banker told the news wire.Glencore and UBS declined to comment to Reuters on the Mail on Sunday report.RD