Glencore barred from ENRC bid for six months

Glencore barred from ENRC bid for six months

London: Glencore will be barred from bidding for embattled miner ENRC for six months under UK takeover rules, after the commodities trader said it was not actively considering a bid.

Glencore, the world’s largest diversified commodities trader, said on Wednesday that comments to analysts and reporters during its maiden quarterly results presentation on Tuesday had subjected it to an article in UK takeover rules - rule 2.8 - which will restrict any move on ENRC.

Rule 2.8 of the takeover code applies where a company has made a statement that it does not intend to make an offer and means the company may not, unless there is a material change in circumstances, make a move on the target company for six months.

Glencore, which listed in part to gain firepower for larger acquisitions, has been seen as a potential catalyst for the return of large-scale deals to the sector.

“Glencore monitors a wide range of opportunities in the sector and will continue to do so," chief executive Ivan Glasenberg told reporters on Tuesday.

“However, we can confirm that although we talk to a lot of people in the sector, we are not actively considering a bid for ENRC," he added.