Copying and distributing are prohibited without permission of the publisher
SPOTLIGHT: Glencore-Xstrata says coal, copper marketing will highlight merger's benefits
February 09, 2012 - 14:53 GMT
Glencore-Xstrata’s operations in the coal and copper concentrates markets will show how it will achieve an overall saving of $500 million per year in marketing synergies, Glencore ceo Ivan Glasenberg said this week.
His comments, and those of his counterpart at Xstrata, Mick
Davis, are the first firm indications of how the combined
producer-marketer powerhouse will operate in practice, after
years of speculation surrounding the potential benefits to be
had by such a merger. Some analysts remain dubious,
however, viewing the projected figure of $500 million in
immediate marketing gains with scepticism, and warn that such
benefits are always hard to quantify. But for Glasenberg, the
synergies are transparent and straightforward, and can readily
be seen in the coal and copper concentrates markets, as he
explained this week. "Now we get the full flow of the Xstrata
tonnes into the system. That allows us to find price arbitrages
that exist. We're in the bulk commodity sector [...] where
commodities price at different prices in different parts of the
world at different times. We can now take full advantage of
that with the Glencore [and Xstrata]...
All material subject to strictly enforced copyright laws. ©
Euromoney Institutional Investor PLC.
Please log in using your online subscriber details.
Your username will be your registered email address with Metal Bulletin.
If you aren't a subscriber yet, feel free to take a seven day free trial, or subscribe using the instructions below.
A standard subscription include one year's worth of news and prices. You can also upgrade to a premium subscription and benefit from news and pricing data going back to 1997 plus access to our online database - MB Company Data.
Taking a free trial will give you open access to Metal Bulletin online news, prices, archived content and email alert service for the next seven days. Start your free trial today.