DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/9jv3sc/glencore_and) has announced the addition of the "Glencore & Xtsrata Case Study: Creating the Fourth Largest Global Mining Company" report to their offering.
Introduction
Glencore International, a commodity trading giant, is seeking to merge with mining company Xstrata. The move was announced in February 2012 with the proposal accepted by shareholders in November 2012. The deal is worth $31bn and would create the fourth largest mining company in the world. The company would also possess leading positions in power generation and agricultural products.
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Highlights
- Glencore operates in commodity markets, including mining. The company engages in industrial activity and marketing. Xstrata is a mining company which profited from Glencore spinning off its thermal coal assets, and has grown to incorporate many metals The company has focused on organic growth projects, productivity and efficiency.
- Glencore has maintained an interest in Xstrata. The deal would create the fourth largest mining company with a dominant position in many commodities and vertical integration. Glencore will utilize Xstrata's cost cutting abilities. Xstrata would also gain access to Glencore's extensive network of traders and local offices.making decisions.
- The deal has ramifications beyond the mining industry. Glencore CEO Ivan Glasenberg will now be in charge of Xstrata, with the senior management team likely to depart or be seriously depleted. The deal is still subject to approval from competitive authorities, which could force concessions from the authorities to ensure the deal goes through.
Your key questions answered
- Who are Glencore International and Xstrata?
- Why do Glencore and Xstrata want to merge?
- What are the potential consequences of the merger?
Key Topics Covered:
OVERVIEW
GLENCORE AND XSTRATA: VALUE CREATORS
- Glencore's success in growth
- Marketing and Industrial sectors
- Diverse product base helps to mitigate downturns
- Acquisitions helped the company's growth
- The strength of Glencore's IPO
Xstrata
- Strong acquisition and investment drive helped to fuel growth
- Emphasis on cost reductions
- Xstrata's devolution of authority
- Organic growth plans to complement M&A expansion
WHY GLENCORE AND XSTRATA WANT TO MERGE
- A merger of equals
- Glencore and Xstrata's relationship
- Glencore-Xstrata's potential
- Metals and minerals
- New moves into fuel
- Advantages for Glencore
- Advantages for Xstrata
CONSEQUENCES OF THE MERGER
- Is the deal a merger of equals or takeover?
- Qatar Holdings
- Rejection of Golden Handcuffs
- Assimilation problems
- Growth plans
- Management styles
- The deal may require concessions to regulators
- The purchase of Viterra resulted in regulator intervention
- The European Commission
- South African snags
- Accusations of unethical practices
CONCLUSIONS
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Glencore Xstrata: a recipe for success
For more information visit http://www.researchandmarkets.com/research/9jv3sc/glencore_and