Mining industry might think Glasenberg is holding its precious golden ticket but merger is not necessarily a good idea
The mining industry and its investors are in a febrile state. There is real fear that their golden goose – China – is about to stop laying eggs
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Can anything stop, or even slow, Ivan Glasenberg’s quest to dominate the world’s commodity markets?
Having gobbled up mining giant Xstrata, stomping over his friend Mick Davis in the process, the Glencore founder is now apparently turning his guns on Rio Tinto in what could turn into the world’s biggest mining merger.
His timing is impeccable. The mining industry and its investors are in a febrile state. There is real fear that their golden goose – China – is about to stop laying eggs. Its output is slowing, and commodity prices have fallen as a result.
Enter Mr Glasenberg, no doubt with promises of gaudy-looking cost savings displayed on pretty coloured Powerpoints.
The City is already swooning. A deal like that represents a golden ticket. The phone lines to Zug, Switzerland will be burning hot over the next few days as bankers, lawyers, accountants and PR people fall over themselves to get a piece of this pie. Everybody loves a deal.
The regulators might raise an eyebrow or two. But Mr Glasenberg has been here before. He convinced them last time and he’ll do it again.
The rather important question of whether the concentration of so much power over the mining and distribution of so many vital commodities is a good thing? If such a question were ever seriously asked, we wouldn’t be where we are.
The best we can hope for is that this deal – if it actually starts to gather momentum – collapses under its own weight.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments