Mega-deals in mining that created global giants

The companies have confirmed that they are in the early stages of talks with each other to purchase Glencore. This could result in the creation of the world's biggest mining company, valued at nearly $207 billion.

This move is a result of global'miners racing to scale up metals such as copper, which are seen as?critical for the energy transition. It has fueled a surge in expansions and takeovers.

According to LSEG, Glencore's enterprise value is $99 billion. This would make it the largest deal ever in this sector.

Here's a list of major mining deals.

GLENCORE BUYS XSTRATA

In ?February 2012, a year after Glencore debuted on the London Stock Exchange, it agreed an ?all-share purchase of Switzerland-headquartered miner Xstrata, which had an enterprise value of nearly $46 billion, according to LSEG ?data.

The deal created an industry powerhouse that encompassed mining, agriculture and oil, as well as trading.

RIO TINTO BUYS ALCAN

Rio Tinto purchased?Canada's Alcan in 2007 to become the world's number one aluminum producer. In an attempt to diversify its business beyond its strengths in iron ore, copper and other metals, Rio Tinto bought?Canada's Alcan in 2007.

Rio Tinto beat out a hostile offer from U.S. aluminum producer Alcoa, with a $43 billion enterprise value.

ANGLO AMERICAN AGREES TECK RESOURCES TO BUY

Anglo American, a London-listed company, and Teck Resources, based in Canada, announced their plans to merge on September 20, 2024. This will create a global heavyweight focused on copper.

According to LSEG, the?all-share transaction, although structured as a merger between equals, involves Anglo acquiring Teck. Teck currently has a enterprise value of $39 Billion.

The European regulators have signaled that there are no concerns about competition.

FREEPORT-MCMORAN BUYS PHELPS DODGE

Freeport-McMoRan acquired Phelps Dodge Corp in 2007, one of the?most famous names in U.S. Mining History,? to create?the largest publicly traded copper companies?. Phelps Dodge's enterprise value was nearly $23 billion.

The combined entity?s footprint spanned Indonesia to South America.

NEWMONT BUYS NEWCREST MINING

Newmont, world's biggest gold miner in 2023, will acquire Australia's leading gold producer, Newcrest Mining. The enterprise value was close to $20 billion. (Compiled in Bengaluru by Rajasik Mukherjee and Nikita Maria Jio; edited by Jamie Freed).

(source: Reuters)