Partners Inc., the investment vehicle of former Xstrata Plc
chief executive officer Michael "Mick" Davis, has secured a
combined $1 billion from Noble Group Ltd. and private equity
firm TPG Capital LP to set up a private mining venture called
"X2 Partners is
currently in discussions with a further select group of
potential investors who are also seeking to benefit from
opportunities in the natural resources arena by investing in X2
Resources," the companies said.
The joint venture aims
to create a mid-tier diversified mining and metals group
through the acquisition of assets and businesses, at what Davis
described as an "opportune time" in the cycle.
Davis, who left
Xstrata following its merger with Baar, Switzerland-based
Glencore International Plc earlier this year, established X2
Partners with former Xstrata chief financial officer Trevor
Reid, as well as other executives from the U.K.-listed mining
Hong Kong-based Noble
Group will be the preferred marketer and provider of supply
chain management and logistics services for the new venture,
while Fort Worth, Texas-based TPG will provide deal flow and
access to investors.
agreements in principle are nonbinding and are subject to
International acted as financial adviser to X2.