Xstrata and Glencore agree on $90 billion merger

Tuesday, 07 February 2012 16:12:44 (GMT+2)

Anglo-Swiss miner and coking coal producer Xstrata Plc has announced that it has come to an agreement with international commodities trader Glencore International PLC on a merger worth $90 billion.

Glencore has offered 2.8 new Glencore shares for each Xstrata share, excluding the 34 percent of Xstrata shares that it has already owns. The offer values the entire issued and to be issued share capital of Xstrata at approximately $61.9 billion.
 
Xstrata has also issued its financial results for 2011, reporting record annual production of coal and nickel. The attributable net profit of Xstrata was $5.78 billion in 2011, recording an increase of 12 percent year on year, while its revenue saw an increase of 11 percent year on year to $33.87 billion.

Xstrata stated that its total consolidated coal production in 2011 increased to 85.3 million mt from 79.9 million mt in 2010. While its total thermal coal production amounted to72.4 million mt, up 10.3 percent year on year, its Australian coking coal production decreased slightly to 7.6 million mt from 7.7 million mt in 2010.

 previous article  /  next article