Glencore Xstrata Plc says it is still negotiating with Chinese bidder over a 5-billion-dollar asset

Ivan Glasenberg – the Chief Executive Officer of Glencore Xstrata Plc, which currently is the fourth-largest mining company in the world, announced that the company is still negotiating with the Chinese bidder Minmetals Corp. over an asset, which has been estimated to more than 5 billion dollars. Today the company also posted a 20% increase in adjusted full-year profit to 3.67 billion dollars.

The sale is considered to be coming as a part of Glencores strategy to get authorization from Chinese regulators for the companys Xstrata Plc acquisition in 2013, which was estimated to 29 billion dollars. As reported by the Financial Times, Glencore revealed that 2.4 billion dollars of annual synergies are expected to be achieved from reducing costs of Xstrata.

Glencore Xstrata Plc is said to be in talks with only one bidder – a consortium led by Minmetals, but the Chief Executive Officer of the company made it clear that the Peruvian Las Bambas copper project is to be sold only in case it secures a sufficiently attractive price.

As the Wall Street Journal reported, Mr. Glassenberg said: “It is an asset that we feel comfortable with.” Glencores Chief Executive Officer also shared that a sale below the reserve price is possible, but refused to make any comments if the company is ready to do so.

Mr. Glasenberg, said in a telephone interview, which was cited by Bloomberg: “Theres no roadblock in the talks. We are in discussions with a potential buyer and if we can get the right price we will go ahead and sell it.” He added: “There is a leading bidder, the Chinese, thats no secret, so we are continuing to have discussions with them.”

In February 2014 people familiar with the matter reported that Glencore and China Minmetals Corp. are close to reaching an agreement for the acquisition of the Las Bambas plant in a deal estimated to more than 5 billion dollars. As Bloomberg reported, the Chief Financial Officer of Glencore Xtrata Plc – Mr. Steve Kalmin, said in September 2013 that the profit from the sale may be returned to the companys shareholders.

Glencore Xstrata Plc rose by 2.51% in London by 10:02 GMT to 334.52 pence, marking a one-year change of -9.60% and market capitalization of 43.52 billion pounds.