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GLENCORE/XSTRATA MERGER: Full details of deal released

February 08, 2012 - 10:45 GMT Location: London

KEYWORDS: Glencore , Xstrata , merger , Mick Davis , Ivan Glasenberg

Glencore and Xstrata formally confirmed they have agreed the terms of a recommended all-share merger of equals worth $90 billion on Tuesday February 7, and also released extensive details of the deal.

The merger ratio will provide 2.8 new Glencore shares for every Xstrata share held, excluding Xstrata shares already owned by the Glencore Group, providing Xstrata stakeholders other than Glencore with a 45% holding in the combined company. Under the deal, each Xstrata share will be valued at 1,290.10 pence ($20.37) on the London Stock Exchange, and its entire share capital will be worth about £39.1 billion. This represents a premium of about 15.2% to Xstrata’s closing share price of 1,119.50 pence on February 1, which was the last business day before Xstrata announced it was in discussions with Glencore. There will also be a premium of about 27.9% to Xstrata’s volume weighted average share...

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

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