Glasen­berg the hunter be­comes the hunted

The Jewish Chronicle - - LIFE -

fi­dence to go on a buy­ing spree. The pur­chases in­cluded the Cana­dian grain han­dling busi­ness Viterra bought for shade un­der £4bn. In May 2013, Glen­core took full con­trol of the min­ing group Xs­trata, cre­ated by another South Africa, Mick Davis, for the grand sum of £26bn, in a deal that fi­nally was bro­kered by none other than for­mer Prime Min­is­ter Tony Blair. By July 2014, Glen­core looked to be top of the world and Glasen­berg imag­ined he might be in a po­si­tion to take over or merge with Bri­tain’s most ven­er­a­ble min­ing com­pany, Rio Tinto, with a history that can be traced back to the early 19th Cen­tury.

It all looks very dif­fer­ent now. The slow­down in China and Bei­jing’s switch from a fo­cus on man­u­fac­tur­ing to con­sump­tion has led to a cat­a­strophic col­lapse of com­mod­ity prices. We are all fa­mil­iar now with how the oil price has dipped be­low $50-a-bar­rel fall­ing more than 50pc. But sim­i­lar or even greater falls have been recorded in all the ma­jor com­mod­ity groups from iron to coal and cop­per to wheat. And the as­sump­tion that Glen­core, with its trad­ing skills, could in­su­late it­self from this, has proved hope­lessly wrong. The mighty have fallen and Glen­core’s shares are the big­gest losers on the Te­na­cious: But Ivan Glasen­berg is in the fight of his life to save Glen­core


Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.