Glencore mulls $19.5-bn bid for Kazakh ferrochrome producer ENRC

Swiss commodity and resources supplier Glencore International AG  is mulling a $19.5-billion takeover bid for Kazakhstan's Eurasian Natural Resources Corporation Plc (ENRC).

Glencore's chief executive, Ivan Glasenberg, is said to have discussed a deal and received a positive response from the three Kazakh oligarchs - Alexander Mashkevitch, Patokh Chodiev and Alijan Ibragimov - who currently own 45 per cent of ENRC's shares, the Sunday Times yesterday reported citing anonymous  sources.

The government of Kazakhstan, which owns 11.65 per cent of ENRC, the world's largest ferrochrome producer, has also reportedly given its nod to the deal, though the extent of its support remains unclear.

ENRC's local rival Kazakhmys owns 26 per cent, while the rest are held by other investors.

If the ambitious deal goes through, Glencore, which raised $11 billion through an initial public offer in London last month, would become one of the world's largest mining companies, rivaling majors like Anglo Australian miners BHP Billiton and Rio Tinto and Vale of Brazil.

Listed on the London exchange in 2007, ENRC is currently in the midst of a boardroom battle over governance that has pitted its independent directors against its founders.