One of the world's leading Swiss-based commodities trade is looking to merge with Xstrata, a Swiss-headquartered international miner, in an all-share merger to become a global mining leader.
Glencore International Plc already has a 34 per cent stake in Xstrata and does the marketing for Xstrata's ferrochrome, coal and nickel products.
There is some analyst speculation that a merger would allow Glencore to increase its control of Xstrata's copper and zinc production as well.
In a Feb. 2 statement, Xstrata confirmed that has been approached by Glencore and discussions are underway.
“There can be no certainty that any offer will be made,” said the Xstrata release.
Headquartered within kilometres of Xstrata's corporate headquarters in Zug, Glencore is a global trader and financier of minerals, energy and agricultural products.
Xstrata, which acquired Falconbridge in 2006, operates Sudbury's Fraser Morgan and Nickel Rim South mines, mill and smelter operations, as well as the Kidd Mine in Timmins, considered the world's deepest copper and zinc operation.
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