CHICAGO Trafigura AG has outbid Glencore Xstrata Plc in an auction for 32,000 tonnes of alumina offered for sale by bankrupt aluminum producer Ormet Corp.
Lucerne, Switzerland-based Trafigura and Hannibal, Ohio-based Ormet agreed to a purchase price of nearly $9 million, or $281 per tonne, according to a sales contract signed by executives from both companies.
The deal came after a telephone auction between Trafigura and Baar, Switzerland-based Glencore on Nov. 21, according to court documents. Ormet is seeking court approval for the sale, documents indicate.
Glencore made an initial offer of $8.44 million, or $263.75 per tonne, only to see Trafigura increase the ante with a competing bid and forcing the auction (amm.com, Nov. 19).
Ormet, which filed for bankruptcy protection in February, has said it is trying to sell what it considers to be excess assets, including raw materials such as alumina, anodes, caustic soda and bauxite (amm.com, Oct. 16).