Record prices drive race for mineral sector mergers

0 Comments | AFP, May, 2007

PARIS (AFP) — Record metal prices and a drive to corner the markets have spurred mining groups into competition while sparking a frenzy of mega mergers.

The latest to date was an offer of 33 billion dollars (24 billion euros) a week ago by US aluminium group Alcoa for Canadian rival Alcan in a bid to become the world's biggest aluminium group ahead of the Russian-Swiss Rusal.

Rusal was the product of a merger in March of three companies, the Russians Rusal and Sual with Glencore of Switzerland.

Alcoa is also looking over its shoulder however as the sector consolidates and Chinese groups gain ground.

On Wednesday, global stock markets were swept by rumours of a takeover bid for the number three mining group Rio Tinto by leader BHP Billiton, both of...