{"id":58,"date":"2012-02-07T08:27:01","date_gmt":"2012-02-07T08:27:01","guid":{"rendered":"http:\/\/79.143.185.113\/?p=58"},"modified":"2012-02-07T08:27:01","modified_gmt":"2012-02-07T08:27:01","slug":"glencore-and-xstrata-agree-90-billion-merger","status":"publish","type":"post","link":"https:\/\/praag.org\/?p=58","title":{"rendered":"Glencore and Xstrata agree $90 billion merger"},"content":{"rendered":"

\"\"<\/a>(Reuters) – Glencore and Xstrata agreed an all-share merger worth $90 billion (56 billion pounds) on Tuesday in the industry’s largest ever deal, creating a commodities powerhouse spanning mining, agriculture and trading.<\/p>\n

Glencore, the world’s largest diversified commodities trading house, will issue 2.8 new shares for each Xstrata share in a deal they said was a “merger of equals.”<\/p>\n

The ratio is a 15.2 percent premium to Xstrata shareholders compared with its share price last Wednesday before word leaked out about the merger talks, a joint statement said.<\/p>\n

“A merger between Glencore and Xstrata offers a unique opportunity to create a new business model in our industry to respond to a changing environment. It is the logical next step for two complementary businesses,” said Xstrata chief executive Mick Davis, who will be CEO of the enlarged Glencore.<\/p>\n

Glencore CEO Ivan Glasenberg will be deputy CEO and Xstrata chairman John Bond will retain his post.<\/p>\n

Xstrata shareholders other than Glencore, which already has a 34 percent stake in the mining group, will hold 45 percent of the new group.<\/p>\n

Bringing together Xstrata, the world’s fourth-biggest diversified miner, and Glencore will create a group looking to ride an extended surge in demand in coming years for commodities from China and other emerging nations.<\/p>\n

As the world’s biggest exporter of coal for power plants and a top copper producer, the combined firm aims to have the bulk to compete with mining sector leaders BHP Billiton, Vale and Rio Tinto.<\/p>\n

On Monday, Xstrata shares closed down 1.7 percent while Glencore declined 4.5 percent, against a 1.0 percent fall in the sector, with both still above the level they were at before the potential deal was announced.<\/p>\n

(Reporting by Eric Onstad)<\/p>\n","protected":false},"excerpt":{"rendered":"

(Reuters) – Glencore and Xstrata agreed an all-share merger worth $90 billion (56 billion pounds) on Tuesday in the industry’s largest ever deal, creating a commodities powerhouse spanning mining, agriculture and trading. Glencore, the world’s largest diversified commodities trading house, will issue 2.8 new shares for each Xstrata share in a deal they said was … Continue reading “Glencore and Xstrata agree $90 billion merger”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,3],"tags":[44,41,43,42],"class_list":["post-58","post","type-post","status-publish","format-standard","hentry","category-business-and-finance","category-news","tag-commodites","tag-glencore","tag-merger","tag-xstrata"],"cc_featured_image_caption":{"caption_text":false,"source_text":false,"source_url":false},"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/posts\/58","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/praag.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=58"}],"version-history":[{"count":2,"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/posts\/58\/revisions"}],"predecessor-version":[{"id":61,"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/posts\/58\/revisions\/61"}],"wp:attachment":[{"href":"https:\/\/praag.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=58"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/praag.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=58"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/praag.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=58"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}