Earlier this week Rio Tinto was forced to confirm Swiss-based mining giant Glencore had indeed approached it about a possible merger.
Today, there are reports Glencore has been considering an Australian Stock Exchange listing.
According to Fairfax Media two people close to the matter said management in Switzerland spoke to large investors in the “northern summer” to test the waters of a secondary listing on the ASX.
Fairfax reported the sources said no final decision had been made and it’s not clear if the listing is still being thrown around.
In November last year Glencore added Johannesburg to its listings in London and Hong Kong. Adding Australia to the list makes sense with the swag of projects it now has here after acquiring mining company Xstrata.
Australia also has a strong pool of investors who understand – and are comfortable with – mining stocks.
In September the miner launched a debut deal to tap the Australian debt capital market for about half a billion dollars, it is that exercise which could’ve triggered talks about a potential ASX listing, a source close to the matter told Business Insider.
Glencore this week said it was no longer actively considering a merger offer for Rio after its CEO Ivan Glasenberg reportedly telephoned Rio chairman Jan Du Plessis in July, but that it wouldn’t rule it out in the future.
There’s more here.