Table of Contents
Key Points
- Glencore to sell Philippine copper smelter to Villar family amid global oversupply and record-low refining fees.
- The deal signals Gary Nagle’s strategic shift as Glencore trims non-core assets and boosts metals portfolio efficiency.
- Villar family diversifies $23 billion empire, expanding into copper refining through landmark acquisition of Pasar.
Glencore Plc, the Swiss commodity trading and mining giant led by South African executive Gary Nagle, is set to sell its copper refinery in the Philippines to the Villar family—one of the country’s wealthiest business dynasties. The move comes as global copper smelting faces unprecedented pressure from record-low processing fees and overcapacity.
Sources familiar with the deal, which remains confidential, confirmed the sale of the Philippine Associated Smelting and Refining Corp (Pasar) to the Villar family, led by real estate magnate Manny Villar Jr. Glencore and the Villar representatives declined to comment.
Pasar’s strategic role and industry headwinds
Strategically located, Pasar has been a critical asset for Glencore’s copper trading operations, facilitating the processing of copper concentrates from key Pacific suppliers in Australia and Indonesia. It also handles cargoes redirected from South America destined for China.
However, copper smelters worldwide are grappling with oversupply in refining capacity, driving processing fees down to historic lows. This market squeeze has prompted Glencore to conduct a comprehensive review of its copper and zinc smelting portfolio, resulting in write-downs of its metal processing assets.
Earlier this year, Glencore placed the Philippine refinery on care and maintenance, signaling an operational pause while seeking a buyer. The sale process has been ongoing since late 2024, highlighting the company’s strategic pivot amid challenging market dynamics.
Villar family expands industrial footprint
The Villar family, with an estimated net worth exceeding $23 billion, is a dominant force in the Philippines’ real estate and retail sectors. Manny Villar Jr. controls the country’s largest home builder alongside significant stakes in retail chains, including supermarkets and home improvement stores. Acquiring Pasar marks a diversification into the metals processing industry, potentially expanding their industrial portfolio.
Glencore’s global growth and market moves
Founded in the 1970s as a commodity trading house, Glencore has transformed into a mining and energy powerhouse operating in 35 countries with over 150,000 employees. Under Gary Nagle’s leadership, the company has prioritized growth in metals and energy sectors.
In 2024, Glencore posted revenues of $230.94 billion, a 6 percent increase driven by strong metals trading and marketing performance. The deal follows Glencore’s recent portfolio overhaul under CEO Gary Nagle. In late May, the company transferred $30 billion in mining assets to Australia, nearly doubling its regional footprint to $65 billion, in what some analysts view as groundwork for a future mega-merger.
Recently, Glencore announced a $1 billion share buyback following a $900 million cash inflow and acquisition of a 16.4 percent stake in Bunge from the Viterra deal. With this transaction, Gary Nagle’s Glencore streamlines its balance sheet and refocuses on core growth markets, positioning the commodities giant for the next cycle of energy-metal demand.
