BRUSSELS (dpa-AFX) - A group led by China Minmetals Corp. is nearing an agreement to acquire Commodities trader and natural resources firm Glencore Xstrata Plc's (GLCNF.PK, GLNCY.PK, GLEN.L) Las Bambas copper project in Peru for more than $5 billion, the Bloomberg reported citing people familiar with the matter.
Citing the people, the report suggested that a deal between Minmetals and Glencore could be announced as early as this month subject to Chinese government approval. The asset could fetch closer to $6 billion.
The Chinese group includes Citic Metal Co., a unit of state-controlled conglomerate Citic Group Corp., and China Reform Holding Corp., an investment company backed by the country's state assets regulator, the people said.
Glencore is selling the Las Bambas mine as part of an agreement to win Chinese regulatory authorization for its $29 billion takeover of Xstrata Plc last year.
Minmetals group was the sole Chinese bidder left after a consortium led by Aluminum Corp. of China abandoned its offer for Las Bambas in November, people with knowledge of the matter said then. Chinalc, decided to withdraw after rejecting a proposal by the Chinese government that it be a minority partner in a combined bid led by Minmetals, the report said quoting the people.
China required Glencore to sell Las Bambas to limit its power over the global copper market.
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