Iron ore price, page-18586

https://www.google.com.au/amp/s/amp...n/news-story/88215381ae0c3b374ab5e9bbf48d7aa3

Glencore considered Fortescue takeover in 2016, but Forrest wasn’t keen

BY PERRY WILLIAMS
11:00PM JANUARY 5, 2020

Mining giant Glencore weighed up a takeover deal for billionaire Andrew Forrest’s Fortescue Metals Group as it considered pursuing a “big bang” acquisition to gain exposure to iron ore.

The $61bn Anglo-Swiss miner and commodities trader is understood to have held internal discussions over a possible approach for Australia’s third-largest iron ore producer as prices for the metal plunged in 2016, potentially creating an opportunity for a deal.

However, the Ivan Glasenberg-led company decided not to pursue any potential deal further given indications Mr Forrest was not a seller of his controlling 35 per cent stake, sources close to the companies told The Australian.

Glencore, Australia’s largest coal producer, operates in 50 countries but owns no iron ore mines, meaning its hasn’t been able to cash in on the price rally like its rivals Rio Tinto and BHP, where the commodity is their biggest earnings contributor.

The miner remains open to diversifying into the metal given China’s insatiable thirst for the steelmaking material but would favour a significant deal for a pure-play miner like Fortescue rather than single mine assets divested from its resources competitors, sources said.

Fortescue said it was focused on growing its business.

“Fortescue is focused on the long-term sustainability of our core iron ore business, balance sheet strength and delivering returns to shareholders, as well as harnessing our expertise and operational reputation for future growth and development,” chief executive Elizabeth Gaines said.

“We have world-class assets and infrastructure and in the 2019 financial year Fortescue’s excellent performance delivered outstanding financial results and we paid record dividends to our shareholders.” .......