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Glencore Eyeing Anglo After Xstrata Merger Closes

BHP, FQVLF, RIO
Billionaire Ivan Glasenberg, CEO of Glencore International Plc. L:GLEN is due to close a $37-B takeover of Xstrata Plc L:XTA, creating the world’s 4th-largest mining company.

His huge role in the mining industry has speculation growing about his next move, if there is on tap it could be really big.

Mr. Glasenberg, 56 anni, may consider the takeover of Anglo American Plc L:AAL, according to people familiar with his thinking. The $43-B mining giant trades at the cheapest level relative to profit of any rival, the data show.

Also on Ivan’s mind: Smaller deals such as a purchase of Eurasian Natural Resources Corp. L:ENRC, which has operations in the Democratic Republic of Congo that complement Glencore’s. First Quantum Minerals Ltd. L:FQM, PINK:FQVLF is also a target, according to a source.

Representatives for Glencore, Anglo, ENRC and First Quantum declined to comment.

Speculation about Mr. Glasenberg is louder than usual as chief rivals in the mining industry have fallen by the wayside. In recent weeks, Anglo CEO Cynthia Carroll and Rio Tinto Group’s Tom Albanese resigned after both left a trail of writedowns at struggling projects and disastrous acquisitions.

BHP Billiton Ltd. NYSE:BHP CEO Marius Kloppers is also on the way out, and Xstrata CEO Mick Davis is leaving the combined company after Mr. Glasenberg insisted on running it himself and investors revolted over a pay package proposed for Davis and other executives.

That leaves Mr. Glasenberg, a commodities trader, soon to preside over a company with combined revenue of $209-B and with a long record of successful deals, as the most powerful man in the mining industry.