Despite Glencore International declaring back in June 2011 that it was not actively considering a bid for Eurasian Natural Resources Corporation, speculation has persisted over the commodity trader’s M&A aspirations.

Analysts at Nomura added their tuppence worth to the debate, suggesting Glencore take the stake in ENRC that belongs to Kazakhmys. In return Kazakhmys would get Glencore owned Kazzinc, a major producer of zinc that also produces copper, precious metals and lead.

Analyst Mr Patrick Jones said that "Speculation has focused on whether Glencore is entertaining a potential takeover of Central Asian miner ENRC, spurring questions around Kazakhmys's own 26% stake in ENRC. In our view, Glencore is unlikely to pay large takeover premiums in the sector and Kazakhmys would prefer to have a Central Asian target to replace the stake in its portfolio."

As such, he suggested that Glencore and Kazakhmys could both create value by swapping Kazakhmys’s ENRC stake for Glencore’s Kazzinc.

Mr Jones argued that acquiring the ENRC stake would give Glencore exposure to iron ore and a potential entry point to market ENRC’s iron production.

(Sourced from www.telegraph.co.uk)