GLENCORE & XSTRATA MERGER?
03 Feb, 2012
It has been announced that a ‘merger of equals’ could be on the cards, with talks underway between Glencore and Xstrata.
The commodities giant and the mining heavy weight are looking to join forces to create a firm worth around $80 billion, an announcement that has had a noticeable effect of the share prices of each company.
Glencore shares were up by 5.4 per cent in London, whilst Xstrata shares were up by an impressive 10 per cent.
March 1st is the date that will see the final decision on the proposed merger that has been described as ‘broadly positive for Glencore’s shareholders’ by Charles Cooper, an analyst at Oriel Securities speaking to the BBC. He said: “”If the deal happens, Glencore would go from making its money primarily from its trading arm to a copper/coal company.”
Picture: London Stock Exhange