Vale-Xstrata Held up by Marketing

The dispute over marketing rights held by Swiss commodities trader Glencore – which has a 35% stake in Xstrata – is the main obstacle to an acquisition, Vale CEO Roger Agnelli confirms, according to wire reports. Vale is “not in a rush” to buy Xstrata and is analyzing other options, according to the reports which follow a Webcast conference Friday. The takeover could cost up to $95bn, but the two sides are understood to be moving apart, despite the fact that Vale has already assembled $50bn in financing. Glencore – which turned Xstrata into a global commodities powerhouse in less than six years – has proven a savvy negotiator, making Vale’s bold takeover attempt a difficult and increasingly expensive proposition. The fact that Glencore is selling at all suggests to some analysts that an acquisition might end up being a huge and costly flop for the Brazilian firm.