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By Jack Farchy
Financial Times, London
Sunday, June 17, 2012
http://www.ft.com/intl/cms/s/0/a5f8007e-b86f-...144feabdc0.html
The prospective buyer of the London Metal
Exchange has warned that it will clamp down on the
lucrative metal warehousing
business that has attracted
investments from Goldman
Sachs and Glencore.
Hong Kong
Exchanges & Clearing, which on Friday announced an agreement to buy the
135-year-old group for L1.4 billion, said it was planning to change the rules governing the LME's network of warehouses in
an attempt to shorten the
wait to take delivery of metal.
Long queues to remove aluminium from LME warehouses have sparked angry confrontations between consumers of metal, such as Coca-Cola, PepsiCo, and
General Motors, and warehouse owners,
including Goldman, JPMorgan,
Glencore, and Trafigura.
Banks and trading houses have rushed to buy warehousing companies to profit
from the fact that large quantities of metal have become surplus to requirements since the financial crisis. But now that the metal is needed,
consumers say, it can take
more than a year to be delivered.
Read more at
http://www.ft.com/intl/cms/s/0/a5f8007e-b86f-...144feabdc0.html
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