Skip to main content

Streetwise Former Xstrata CEO’s firm adds to funds, stays mum on acquisitions

Former Xstrata CEO Mick Davis leaves after an extraordinary shareholder meeting in the Swiss town of Zug in this file photo taken on November 20, 2012.

Arnd Wiegmann/Reuters

Mick Davis, the former chief executive of Xstrata, has raised an additional $1-billion (U.S.) to finance his new mining company.

Mr. Davis' private equity firm, X2 Resources, has now raised $3.3-billion from investors, as well as $1.5-billion in conditional equity funding for a total of $4.8-billion.

Mr. Davis created X2 after Glencore Plc bought Xstrata in 2013.

Story continues below advertisement

Since then, the market has been waiting for Mr. Davis and his team of former Xstrata executives, to make a move.

A number of mines have come onto the market, as giant players including BHP Billiton Ltd. and Anglo American Plc seek to streamline their operations.

Mr. Davis has looked at some of BHP assets, including its nickel operations in Australia. But his bid was rejected as too low, people familiar with the matter said.

X2 has not disclosed when it will deploy its capital. The private equity firm also declined to provide detail of potential acquisitions, except to say it was "currently reviewing a number of opportunities."

Mr. Davis built Xstrata into one of the world's largest mining companies through acquisitions, including the takeover of Canadian nickel producer Falconbridge.

Two of Mr. Davis' investors are TPG Capital, an American investment firm, and Noble Group, one of the largest commodities trading companies. The other investors were not disclosed.

Report an error Editorial code of conduct
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Discussion loading ...

Cannabis pro newsletter