Glencore Replaced by Noble in Marketing Nyrstar’s European Zinc
Asia’s biggest commodity trader will sell 200,000 metric tons of Nyrstar’s output a year in Europe and buy 1 percent of the company for 6.4 million euros ($8.7 million), Nyrstar said today. Nyrstar’s in talks with possible partners on the rest of the 150,000 tons of commodity-grade zinc produced in Europe.
Nyrstar rose 1.7 percent to 3.62 euros by 10:31 a.m. in Brussels. Noble Group will buy shares at 3.76 euros each.
Glencore will stop selling Nyrstar zinc produced in Europe by Dec. 31 and sold a 7.8 percent stake in the company to meet antitrust approval for its $29 billion takeover of Xstrata Plc. Glencore will still sell Nyrstar’s commodity grade zinc and lead produced outside the European Union. The company produces zinc in Clarksville, U.S., and Hobart and Port Pirie in Australia.
The deal “represents a major step in executing Nyrstar’s new global commercial strategy, which is to produce a series of products that will be marketed and sold at above industry returns through a better strategic understanding of the markets,” Bob Katsiouleris, Nyrstar’s group general manager for commercial operations, said in a statement.
Noble Group yesterday agreed to invest $500 million in X2 Resources, founded by former Xstrata Chief Executive Officer Mick Davis and former Chief Financial Officer Trevor Reid.
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