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Glencore, Xstrata seek ‘new business model’ in $90bn merger

February 07, 2012 - 07:14 GMT Location: Shanghai

KEYWORDS: Glencore , Xstrata , merger

Xstrata has agreed an all-share takeover by Glencore to create a $90 billion group that could shake up the mining sector from extraction to marketing.

Glencore will offer 2.8 shares per Xstrata share not already held by Glencore, the companies said. The offer is a 15.2% premium over Xstrata’s closing price on February 1. Mick Davis,...

All material subject to strictly enforced copyright laws. © Euromoney Institutional Investor PLC.

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Capital Markets

May 24, 2012 11:32 CAML launches one plant; looking into launching another
May 24, 2012 11:23 Xstrata Copper bets on China demand in second half
May 24, 2012 08:30 Vetria reaffirms port solution for 27.5m tpy iron ore project
May 24, 2012 08:22 SHFE vs LME arbitrage: copper, aluminium, zinc
May 23, 2012 13:23 Rwanda seeks bidders for tin deposit

Aluminium

May 24, 2012 13:48 Base metal prices stable in LME officials as euro plateaus
May 24, 2012 12:20 Constellium signs multi-year, $2bn supply agreement
May 24, 2012 11:25 Shanghai copper price little changed; arbitrage gap narrows
May 24, 2012 10:15 Base metals prices fall in LME pre-market in the wake of listing eurozone
May 24, 2012 08:22 SHFE vs LME arbitrage: copper, aluminium, zinc

Lead & Zinc

May 24, 2012 13:48 Base metal prices stable in LME officials as euro plateaus
May 24, 2012 12:08 Brazilian zinc consumption will grow 6% in 2013
May 24, 2012 11:25 Shanghai copper price little changed; arbitrage gap narrows
May 24, 2012 10:15 Base metals prices fall in LME pre-market in the wake of listing eurozone
May 24, 2012 08:22 SHFE vs LME arbitrage: copper, aluminium, zinc

Copper

May 24, 2012 15:26 Copper products sales in Brazil hit record $8.6bn
May 24, 2012 13:59 Copper concentrator failure halts production at Botswana’s Mowana mine
May 24, 2012 13:48 Base metal prices stable in LME officials as euro plateaus
May 24, 2012 11:32 CAML launches one plant; looking into launching another
May 24, 2012 11:25 Shanghai copper price little changed; arbitrage gap narrows

Nickel & Tin

May 24, 2012 13:48 Base metal prices stable in LME officials as euro plateaus
May 24, 2012 10:15 Base metals prices fall in LME pre-market in the wake of listing eurozone
May 24, 2012 05:50 Trafigura will move to Singapore this year
May 24, 2012 03:57 LME ASIAN WRAP: Copper prices see small lift from US data
May 24, 2012 00:15 PolyMet expects review by 1st qtr.

Ores & Alloys

May 24, 2012 14:16 RESOURCE NATIONALISM: Lesotho’s ruling party wants 51% share in foreign-owned mines
May 23, 2012 17:01 MB NON-FERROUS PRICE CHANGES
May 23, 2012 15:05 Ferro-molybdehum price slides as suppliers slash offers
May 23, 2012 14:43 Chinese tungsten ore output drops 8% in April
May 23, 2012 04:10 South Australia still optimistic about BHP's Olympic Dam

Minor & Precious Metals

May 24, 2012 10:04 Rubamin ceases production of cobalt; Chemlock diversifying
May 24, 2012 00:15 PolyMet expects review by 1st qtr.
May 24, 2012 00:12 Electrolytic manganese sale price irks market
May 23, 2012 19:51 Trevali buys mill to ease Halfmile start-up
May 23, 2012 17:01 MB NON-FERROUS PRICE CHANGES

Iron Ore & Coking Coal

May 24, 2012 12:44 Bellzone’s first Forecariah ore shipment not expected until Q3
May 24, 2012 12:42 Severstal resources division sales down 9% in Q1
May 24, 2012 12:37 Tata increases 2012 Northern Iron offtake deal to 1.77m tonnes
May 24, 2012 11:54 Vale’s iron ore distribution centre in Malaysia to start operating in 2014
May 24, 2012 11:48 Spot 63.5% Fe iron ore prices fall to $137-138 cfr

Comment & analysis

EXPERT VIEW FROM ERNST & YOUNG: Horror week favours the brave

Seven days is a long time in the investment world, but last week must have felt longer than most.
COMMENT: When super-cycle poster child BHP Billiton trims its plans...

BHP Billiton is one of the poster children for the commodities super-cycle: a mining company whose immense upstream assets in copper and iron ore have fed the industrialisation of China since the early years of the 21st century and enabled it to return $52 billion to shareholders between 2001 and 2011.
LORD COPPER: There is nothing to fear after JP Morgan loss ...

So, here we go again. Another bank, another huge trade gone bad. This one doesn’t even appear to have been a case of rogue trading; a whole desk seems to have been operating with the full knowledge of the management and/or risk committee.