Glencore and Xstrata, commodities giants extra-ordinaire, desire to merge in a $90bn merger. Glencore would own 55% of the new entity which would be headed by Xstrata CEO, Mick Davis. Xstrata is 1.5% owned by Fidelity Investments, who believe (amongst others in the market e.g. Standard Life, Schroders) that Glencore should offer more than it has for its share in the new concern. Glencore already own 34% of Xstrata.
One of Xstrata's goals is cost-reduction initiatives in an inflationary environment.
One of Xstrata's goals is cost-reduction initiatives in an inflationary environment.
