Australian coal producer Xstrata has confirmed that it is in talks with the international commodities trader Glencore International PLC, regarding a possible merger worth approximately $80 billion. Xstrata also stated that there is no certainty that any offer will be made by Glencore.
Glencore which already holds 34 percent shares in Xstrata has until March 1 to make an offer.
Both companies are said to be of equal value, Glencore is worth nearly $45 billion, while London-listed Xstrata is valued at $50 billion approximately.