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Glencore buys out billionaire with $1bn deal

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London - Glencore agreed to a $960m deal with Israeli billionaire Dan Gertler to buy out his holdings in two Congolese copper and cobalt mines, ending a decade-long relationship in which both built up key mining assets in the country.

Glencore will pay Fleurette Group, a company owned by Gertler’s family trust, $534m cash after all debts are paid, the company said in a statement. The assets include a 31% stake in Mutanda Mining, the world’s biggest cobalt mine, and a 10.3% holding in Katanga Mining, which operates a nearby copper and cobalt mine.

The deal allows Glencore to end a relationship that has brought much scrutiny, both for corruption investigations into Gertler and for the close nature in which the two companies developed their business. The deal also allows Glencore to take full ownership of the mines as commodity prices recover from a three-year lull.

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