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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]...
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Euromoney Institutional Investor PLC.
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