Switzerland mining firm, Glencore Plc, has disclosed its rejection of an unsolicited offer for its mining operations in the Democratic Republic of Congo (DRC) late last year.
This was revealed in a statement by the company’s spokesperson on Friday, dismissing reports that it was actively seeking buyers for its Congolese assets.
“Glencore has not engaged any banks or advisors and is not running a sale process for its operations in the DRC,” the spokesperson said in an emailed statement made available to Reuters.
Earlier on Friday, the Financial Times reported that Glencore had considered selling part or all of its copper and cobalt operations in the DRC.
The report suggested that the company held preliminary discussions with a potential buyer from the Middle East.
However, Glencore declined to confirm the identity of the interested party when contacted by Reuters.
Following the report, shares of the FTSE 100-listed company climbed as much as 4.8% before stabilizing. Despite the temporary rise, Glencore’s stock has declined nearly 9% over the past year.
Mergers and acquisitions in the mining sector
Mining companies have been exploring mergers and acquisitions as they seek to strengthen their position in the global metals market, particularly for copper, which is expected to see increased demand as industries transition to cleaner energy source.
Glencore, a leading producer of coal and base metals, has previously stated that it is open to deals that benefit shareholders. Last year, it approached Rio Tinto about a potential merger to create the world’s largest publicly listed mining company, but discussions fell through.
The move came after BHP Group’s $49 billion bid for Anglo American, which was abandoned due to structural challenges in the deal.
Reuters also reported that Glencore had explored a possible combination with Anglo American following BHP’s proposal.
Despite ongoing industry consolidation, Glencore has maintained that it is not actively pursuing a sale of its DRC assets at this time.
