Glencore share price: Conglomerate interested in Shell’s troubled Nigerian assets

on Mar 5, 2014
Updated: Apr 9, 2020
Listen, Wednesday, March 5: Glencore Xstrata Plc (LON:GLEN) has confirmed its interest in Royal Dutch Shell Plc’s (LON:RDSA) troubled assets in Nigeria, Reuters has reported. The mining giant has also flagged interest in BHP Billiton’s (LON:BLT) nickel business in Australia.

Glencore’s share price is up 0.05 percent in London so far today, while Shell’s stock is currently off 0.23 percent.
**Glencore looking at Shell’s assets in Nigeria**
Reuters yesterday quoted Glencore chief executive Ivan Glasenberg as saying that the mining giant would look at Shell’s assets in Nigeria.
“We are always interested in every asset that comes for sale,” Glasenberg said when asked about the Nigerian assets at a presentation of the group’s full-year results. “We always look at it and check if we can satisfy our returns criteria.”

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Shell is looking to offload its 30 percent stake in four oil blocks in the African country where the group’s operations are often disrupted by oil theft and vandalism. The European energy giant is also selling its 97-kilometre Nembe Creek oil pipeline which carries 150,000 barrels of oil a day.
Last week, Shell’s Nigerian unit shut down the pipeline to stop leakage caused by oil theft. (Shell share price: Nigerian unit shuts down pipeline)

Earlier this year, Glencore participated in a consortium including Macquarie Group Ltd (ASX:MQG) which made an unsuccessful bid to acquire some of Shell’s downstream assets in Australia. (Glencore share price: Company said to have quit bidding for Shell Australia assets)

“It’s no secret we were looking at Shell’s disposal in Australia but we couldn’t compete,” Glasenberg was quoted by Reuters as saying. “The number they bought at did not meet our return (criteria).”
Shell, which has stepped up divestments this year, eventually sold the assets to Switzerland’s Vitol Group for A$2.9 billion (£1.6 billion). (Shell share price: Group confirms Aussie assets sale)

**BHP nickel assets**
Glencore has also signalled that it is interested in BHP Billiton’s loss-making Nickel West business in Australia, given potential synergies with the conglomerate’s Minara unit.
“Nickel West is out in the market and you know us, we kick tires and look at anything which is available,” Glasenberg said, as quoted by The Australian newspaper.
BHP’s Nickel West unit suffered an impairment charge of $1.24 billion (£744 million) post-tax in the year ended June 30, 2013, on account of a strong Australian dollar and weak nickel prices.
**As of 10:16 UTC, buy Glencore shares at 331.75p.**
**As of 10:16 UTC, sell Glencore shares at 331.65p.**
**As of 10:17 UTC, buy Shell shares at 2191.00p**
**As of 10:17 UTC, sell Shell shares at 2190.00p.**


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