Huge international raw materials merger planned

Raw materials giant Glencore intends to merge with mining company Xstrata to form a new business with an estimated annual near USD 210 billion turnover, according to reports.

AV: NTB

According to NTB, Switzerland-headquartered Glencore, and Xstrata, managed from London and Switzerland, plan to handle everything from raw materials extraction to transport and sales. The new company’s operations will span from the Congo in Africa to the Pacific’s New Caledonia.

However, two of Xstrata’s ten biggest shareholders could still block the intended merger, alleging it is a takeover attempt on the part of Glencore.

Both Swiss and UK anti-competition authorities may also rule against the move, news agency DPA writes.

Reuters reports Standard Life Investment and Schroders hope other owners will also say no.

Schroders spokesperson Richard Buxton said, Tuesday, “It’s a fabulous transaction seen from Glencore’s viewpoint and is probably excellent seen from the point of view of Xstrata’s management. Nevertheless, it is a bad deal for the majority of Xstrata’s shareholders.”

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Huge international raw materials merger planned

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