Anglo-Swiss multinational mining company Glencore International plans to expand its ferroalloy portfolio by acquiring the assets of Russian coal producer OAO Mechel.
The move from Glencore follows its recent acquisition of European manganese-ferroalloys unit of Vale.
Bloomberg quoted multiple sources familiar with the developments, stating that both the parties are engaged in discussions and are yet to make any concrete decisions.
The sale is part of Mechel’s fund raising plans to facilitate its net debt of $9.3bn, for which it is looking to divest its businesses in home market, Kazakhstan and eastern European markets.
The company is reported to have lost 46% of its value over last 12 months driven by debts and falling profit.
However, the sources also added that Glencore is keen on acquiring assets in Kazakhstan over the Russian properties.
Meanwhile, Eurasian Natural Resources Corp. (ENRC) is also identified as the potential bidder for the assets.