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BHP’s Spinoff Offers Glencore an Alternative to Rio: Real M&A

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Rebuffed by Rio Tinto Group last year, Glencore Plc will soon have another acquisition target to consider for expanding its mining empire: the company formed from the biggest spinoff in the industry’s history.

BHP Billiton Ltd. plans to split off assets including its silver, manganese and aluminum operations to focus on larger businesses such as iron ore. The newly formed company -- Perth, Australia-based South32 Ltd. -- may appeal to Glencore because it’s being spun off near the bottom of the commodity cycle and it produces many of the same metals as the Swiss giant, said Aviate Global LLP.