Glencore in retreat from $475m deal

COMMODITY trader and miner Glencore has pulled out of its planned $475m acquisition of the owner of Peru’s Mina Justa copper project, saying the seller failed to satisfy necessary conditions.

Glencore, the world’s largest diversified commodity trader, had announced in July it planned to buy a 70 per cent interest in Marcobre -- owner of Mina Justa and the Marcona copper property -- from CST Mining Group. It had extended an initial October deadline for the deal to 30 November .

“As not all of the conditions were satisfied Glencore terminated the agreement with CST Mining Group in accordance with its terms,” Glencore said. Glencore joined the stock market last May at a price of 530p. Its float made paper billionaires of senior executives including chief Ivan Glasenberg. He has around a 16 per cent stake in the company.

Analysts at Liberum said walking away from the deal suggested the firm is being prudent.