The Sunday Times reported without naming sources that the London Stock Exchange listed mining company Xstrata, is close to acquiring Colombia’s second largest mining company in a £5 billion ($8 billion) auction.
The Colombian entity is being sold by the US family owned group Drummond and Xstrata is the only bidder to have put a complete and fully funded proposal on the table.
Bank of America-Merrill Lynch is the arranger of the auction and has already extended the original deadline to accommodate other bidders like the LSE listed Vedanta Group and India’s Essar Global.
Unfortunately both the companies failed to arrange the required finances making Xstrata the only successful bidder. Xstrata however, refused to comment.
Sources familiar with the developments said Brazil’s mining giant Vale, Swiss miner Glencore International and mining investment company Vallar had previously shown interest in the Colombian assets.