Sterlite likely to up Hind Zinc holding

MUMBAI: Indian billionaire Anil Agarwal’s London-based resources group may raise its stake in Hindustan Zinc Ltd to strengthen control of the South Asian nation’s largest producer of the metal.

Agarwal’s Sterlite Industries (India) Ltd is in talks to buy the government’s 29% holding, Vedanta Resources Plc spokesman Dhanpal Jhaveri said. Sterlite, a subsidiary of Vedanta, owns 65% and has an option to buy the stake.

Vedanta’s interest extends a record year for takeovers and investments in commodities companies, led by BHP Billiton Ltd’s proposed $128 billion takeover of Rio Tinto Group. Zinc is the world’s worst-performing metal this year, triggering a 25% drop in Hindustan Zinc’s share price.