LONDON X2 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 Resources.
"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 company.
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.
The detailed agreements in principle are nonbinding and are subject to definitive documentation.
Goldman Sachs International acted as financial adviser to X2.