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Zinc the winner in Glencore deal

Those questioning both how long zinc can maintain current highs and whether it will push higher still should be encouraged by Glencore's move this week to gain control of Peru-listed and focused zinc miner Volcan Minera.

Chris Cann

Viewpoint > Mj-comment

Zinc the winner in Glencore deal

Those questioning both how long zinc can maintain current highs and whether it will push higher still should be encouraged by Glencore's move this week to gain control of Peru-listed and focused zinc miner Volcan Minera.

Chris Cann

Zinc the winner in Glencore deal

That Glencore likes zinc so much is very handy for the zinc price (Image: Glencore)

The major has agreed to buy 27% of the voting A shares for US$1.21 per share for a total of $531 million in cash and representing a premium of more than 40%. The deal would increase Glencore's stake in the A shares to 44.8%, though the ‘economic stake' is just 19%. Another offer for further voting shares at around the same price looks likely to go through and would give Glencore control of two-thirds of the company (economic interest: 28%).