[miningmx.com] – THE potential creation of BHP Billiton spinoff company, South32, would provide a merger and acquisition alternative for Glencore CEO Ivan Glasenberg, said Bloomberg News citing analysts.
Paul Phillips, an analyst with Perennial Investment Partners, said Glasenberg was a relentless acquirer of assets and made him a potential buyer of South32 which would be valued at $15bn if BHP shareholders approve its creation in May. “I wouldn’t rule it out, because it’s Ivan,’ said Phillips.
Paul Gait, an analyst for Sanford C Bernstein & Co, said Glasenberg would recognise now was a good time to buy assets while they were cheap. “He’s got a free pass into these assets,’ Gait said. “Looking at it from Ivan’s perspective, I’d be thinking the current downturn isn’t going to last. It never does.’
Glencore last year inquired about the possibility of a merger with Rio Tinto, an offer that was turned down by the Anglo-Australian firm’s CEO, Sam Walsh.
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