Mining firm GlencoreXstrata PLC said on Sunday that it agreed to sell its Las Bambas Peruvian copper project to a Chinese consortium in an all-cash deal worth at least US$5.8 billion, the Wall Street Journal reported.
The deal, one of China’s biggest mining acquisitions in recent years, follows months of tortuous negotiations over how much the copper project is worth, the report noted. The buying consortium is led by MMG Ltd. (01208.HK), a unit of state-controlled China Minmetals Corp.
The transaction is expected to close by the autumn, subject to regulatory approval and a vote by MMG’s shareholders.
China Minmetals, which holds 74 percent stake in MMG, has already “irrevocably” backed the deal, Glencore was quoted as saying in a statement.
Glencore Xstrata agreed to sell Las Bambas to win approval from China’s Ministry of Commerce for Glencore International PLC’s deal to merge with Xstrata, which created the world’s fourth-biggest mining company, the Journal noted.
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