Baar, Switzerland — 11 February 2013 – Glencore International plc “’ the world’s largest publicly traded commodities supplier “’ is considering a listing on the Johannesburg Stock Exchange (JSE) once it has completed its merger with Anglo-Swiss miner Xstrata plc.
Citing a source familiar with the matter, Bloomberg News reports that the source said Glencore was weighing a stock-market listing in South Africa, but noted that the consideration was still at an early stage. The source asked not to be identified because the plans are not public.
The source added that the planned move was being driven by the fact that Johannesburg had a savvy pool of investors who were familiar with both Glencore and Xstrata’s operations in South Africa.
The two firms, which are currently in the midst of a merger which will create the world’s fourth-largest mining company with a market capitalisation of about $80 billion “’ both operate a portfolio of coal assets in South Africa, while Xstrata also holds a nearly 25% stake in South African platinum producer Lonmin plc.
According to some analysts, a listing on the Johannesburg Stock Exchange by Glencore would be a vote of confidence in the African country, where mines have recently been plagued by violent strikes.
The Bloomberg source remarked that Glencore, run by South African-born billionaire Ivan Glasenberg, may still opt not to go ahead with the JSE listing. The Switzerland-based commodities supplier declined to comment.
Source: Bloomberg News, via Invezz.com. For more information, click here.