Glencore and Xstrata close to announcing their merger
Commodity trader Glencore and mining sector heavyweight Xstrata may be close to announcing their merger, perhaps even as soon as this week, said two people with knowledge of the confidential plans, Bloomberg reports.
Commodity trader Glencore and mining sector heavyweight Xstrata may be close to announcing their merger, perhaps even as soon as this week, said two people with knowledge of the confidential plans, Bloomberg reports.
The rationale behind the transaction apparently is to combine the companies' marketing and operations expertise, respectively. That would allow them to better compete with rivals such as BHP Billiton or Rio Tinto.
If carried out the operation would see the creation of a combined £52bn company, might generate savings of approximately $700m and would see the reunification of two firms which parted ways a decade ago.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
AB
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Government launches full review of parental leave and pay – what could it mean for you?
The government wants parental leave to be fairer - will its shake-up fix the widespread problem for families?
-
Nationwide: House prices see biggest monthly fall in over two years
UK house prices dropped by 0.8% in June, according to Nationwide. We reveal the top-performing and worst-performing regions