Glencore International is approaching an agreement with Xstrata Plc
Glencore International Plc is nearing an agreement to combine with Xstrata Plc (XTA), adding mines from Africa to Asia to the world’s largest listed commodity trader, said two people with knowledge of the plan. Two of the Switzerland located companies possibly will announce a treaty as early as this week, said the people, who declined to be recognized because the plans are not to be mentioned. The combined company may be valued at 52 billion pounds ($82 billion) after excluding Glencore’s 34 percent stake in Xstrata.
Combination of Zug-based Xstrata with Glencore, located two miles away in Baar, would reunite two groups which separated a decade ago when Xstrata bought Glencore’s Australian and South African assets for $2.5 billion and went public in London. A deal can create savings of as much as $704 million, Credit Suisse Group AG said in a report in October. Joining gives them that much more level to fight against some of the larger players,
