Glencore takes control of Congolese copper and cobalt mine in a $480-mn deal

Commodities giant Glencore International Plc today said it has taken majority control of the Congolese copper and cobalt company Mutanda Mining Sprl, in a $480 million deal, including debt.

The Baar, Switzerland-based company said it has completed the acquisition of a further 24.49 per cent equity interest in Samref Overseas SA from High Grade Minerals SA and a further 1 per cent equity interest in Samref Congo Sprl from Groupe Bazano Sprl under two separate share purchase deals, for $340 million in cash.

Glencore has also acquired shareholder debts owed to High Grade Minerals of approximately $140 million, taking the deal value to $480 million.

Glencore also has the right to acquire the remaining 25.51 per cent stake held by HGM in Samref Overseas for $430 million, in 2013.

The purchase will increase Glencore's stake in Mutanda to 60 per cent from 40 per cent by increasing its stake in Samref Overseas to 74.49 per cent from 50 per cent.

Samref Overseas owns an 80 per cent indirect stake in Mutanda through Samref Congo.