Last week Switzerland-based Glencore – the world’s biggest minerals trader – announced it would seek a listing on the London and Hong Kong Stock exchanges in mid-May.
Amid the issues being raised about the firm’s transparency and recent record, its transgressions in Zambia deserve an intensive pre-launch investigation.
Will the UK and Chinese regulatory authorities carry one out? This may be strongly doubted.
Glencore IPO opens door to further deals, including one with Xstrata
Top commodity trader Glencore’s planned $12 billion London listing has long been seen as the first step to merging with Xstrata, in what could be the biggest mining takeover in history. The question for most analysts and investors since the IPO was confirmed on Thursday is not if the deal happens but when – and how. Glencore, which is set to list next month, has made no secret of the fact that acquisition firepower is one of the main motivations behind its decision to go public after 37 years and it has no plans to abandon the opportunistic dealmaking that has made the company’s fortunes.