M&A Deal Summary

Glencore Acquires Umcebo Mining Pty.

On December 7, 2011, Glencore acquired metals/mining company Umcebo Mining Pty. from AMCI Capital and First Reserve for 900M RUB

Acquisition Highlights
  • This is Glencore’s 1st transaction in the Metals/Mining sector.
  • This is Glencore’s 3rd largest (disclosed) transaction.
  • This is Glencore’s 1st transaction in South Africa.

M&A Deal Summary

Date 2011-12-07
Target Umcebo Mining Pty.
Sector Metals/Mining
Buyer(s) Glencore
Sellers(s) AMCI Capital
First Reserve
Deal Type Add-on Acquisition
Deal Value 900M RUB

Target

Umcebo Mining Pty.

Johannesburg, South Africa
Umcebo is a mining company with coal mining interests in Witbank, in the province of Mpumalanga, South Africa and with major deposits in the Wonderfontein and Delmas areas of South Africa. Umcebo and its subsidiaries currently own and/or operate eight collieries in the Witbank coalfield, producing various products for Eskom, the domestic market and export markets. An additional colliery will be brought on stream in the near future. Umcebo has the necessary expertise to plan, develop, staff and manage coal mining operations. Umcebo qualifies as a black-empowered company as defined by the Minerals and Petroleum Resources Development Act and the Mining Charter of South Africa.

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Buyer(S) 1

Buyer

Glencore

Baar, Switzerland

Category Company
Founded 1974
Sector Metals/Mining
Employees84,146
Revenue 230.9B USD (2024)
DESCRIPTION

Glencore is a provider of physical commodities, including energy (oil and coal), base metals, soft commodities, and agriculture to industrial consumers. These commodities originate from Glencore's directly or indirectly owned production assets or are secured by Glencore from third parties. Glencore also provides financing, logistics, and other supply chain services to producers and consumers of commodities. Glencore was founded in 1974 and is based in Baar, Switzerland.


DEAL STATS #
Overall 1 of 9
Sector: Metals/Mining M&A 1 of 7
Type: Add-on Acquisition M&A Deals 1 of 6
Country: South Africa M&A 1 of 2
Year: 2011 M&A 1 of 1
Size (of disclosed) 3 of 4
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-03-20 Viterra - Agri-Products Business

Regina, Saskatchewan, Canada

Viterra operates a network of 258 agri-products retail locations throughout Western Canada and 17 retail locations in Australia. Retail locations offer fertilizer, crop protection products, seed and equipment to growers. Viterra also has a minority interest in a nitrogen fertilizer manufacturing plant in Medicine Hat, Alberta.

Sell $1.2B

Seller(S) 2

SELLER

AMCI Capital

Greenwich, Connecticut, United States

Category Private Equity Firm
Founded 2006
PE ASSETS 1.0B USD
Size Large
Type Sector Focused
DESCRIPTION

AMCI Capital is a specialist investment firm focused on the global natural resources and energy sectors. The Firm was originally formed as a joint venture between energy investor First Reserve and American Metals & Coal International (AMCI). AMCI will consider both majority and minority investments and looks to be an active participant in each portfolio investment. AMCI Capital was formed in 2006 and is based in Greenwich, Connecticut.


DEAL STATS #
Overall 2 of 2
Sector: Metals/Mining M&A 2 of 2
Type: Add-on Acquisition M&A Deals 2 of 2
Country: South Africa M&A 1 of 1
Year: 2011 M&A 1 of 1
Size (of disclosed) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-07-01 Umcebo Mining Pty.

Johannesburg, South Africa

Umcebo is a mining company with coal mining interests in Witbank, in the province of Mpumalanga, South Africa and with major deposits in the Wonderfontein and Delmas areas of South Africa. Umcebo and its subsidiaries currently own and/or operate eight collieries in the Witbank coalfield, producing various products for Eskom, the domestic market and export markets. An additional colliery will be brought on stream in the near future. Umcebo has the necessary expertise to plan, develop, staff and manage coal mining operations. Umcebo qualifies as a black-empowered company as defined by the Minerals and Petroleum Resources Development Act and the Mining Charter of South Africa.

Buy $69M
SELLER

First Reserve

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1983
PE ASSETS 32.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

First Reserve is a specialist private equity firm focused on investments in energy companies. First Reserve targets equity investments of $50 to $500 million in companies valued from $100 million to $10 billion. Target areas of interest within the energy industry include energy manufacturing and services (drilling service providers and wellhead equipment manufacturers), energy infrastructure, energy reserves, renewable energy and alternative fuels, and energy related insurance and financial products. First Reserve was established in 1983 and is based in Stamford, Connecticut.


DEAL STATS #
Overall 31 of 59
Sector: Metals/Mining M&A 2 of 2
Type: Add-on Acquisition M&A Deals 13 of 20
Country: South Africa M&A 1 of 1
Year: 2011 M&A 3 of 3
Size (of disclosed) 16 of 17
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-12-05 Renovalia Reserve

Madrid, Spain

Renovalia Reserve is a joint venture formed with Renovalia Energy to own and operate a portfolio of onshore wind farms. The portfolio currently consists of six projects in Spain and one in Hungary, with approximately 260MW of capacity, 245MW of which is in Spain. Revenue is derived principally from long-term tariffs paid for by the energy consumers as a portion of their utility bills. Renovalia Reserve is headquartered in Madrid, Spain.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-01-02 Blue Racer Midstream

Tulsa, Oklahoma, United States

Blue Racer Midstream own, operate, develop and acquire midstream assets in the Utica Shale and certain adjacent areas in the Marcellus Shale. Blue Racer provides natural gas gathering, compression, dehydrating, treating, processing, fractionation, and transportation services, forming an interconnected midstream business. Blue Racer Midstream was founded in 1975 and is based in Tulsa, Oklahoma.

Buy -