Miner Xstrata Says Glencore Wants A Merger

ZURICH : The Swiss mining company Xstrata said Thursday that raw materials giant Glencore is seeking a merger that media reports say could be worth $80 billion.

According to regulations at the London Stock Exchange, where both companies are listed, Glencore has until March 1 to make a firm offer, a Xstrata statement said.

However Glencore company secretary John Burton issued another statement saying: “There can be no certainty that any offer will be made.”

In late morning London trading, Xstrata shares shot up by 9.16 percent to 1,222 pence, while Glencore showed a gain of 4.77 percent to 452.3 pence.

The FTSE index was down overall meanwhile by 0.30 percent.

Glencore was successfully launched on the London Stock Exchange and in Hong Kong, in May 2011 and in the first half of last year saw its net profit soar 57 percent to $2.45 billion.

Ivan Glasenberg has headed the company from its beginnings and he is now a major industry player.

In addition to being a giant trading company, Glencore also holds major mining assets in minerals such as zinc, copper, lead and aluminum.

It also has interests in energy (oil and coal) and agricultural (cotton, sunflower, wheat , sugar) and buys from 7,000 suppliers.

Glencore, which is based in Baar, in the centre of Switzerland, also has its own port facilities, warehouses and a fleet of ships to supply customers around the world.

Xstrata is a mining giant.

The group net profit gained 27 percent to $2.9 billion in the first half of 2011.

- AFP/ch

Channel News Asia