The Rising Influence of Rising Affluence

[ilpapa]

Follow Reuters

Facebook
Twitter
RSS
YouTube

Read

Job growth surges, jobless rate drops to 8.3 percent
9:25am EST
1
Snap analysis: U.S. job creation accelerates broadly
9:19am EST
2
Iran threatens retaliation over oil embargo
10:37am EST
3
Analysis: A sobering look at Facebook | Video
8:30am EST
4
Wall Street gains 1 percent on jobs jump
10:31am EST
5

Discussed

91
Romney wins Florida Republican presidential primary
88
Indiana poised to approve anti-union law
81
Taliban ”poised to retake Afghanistan” after NATO pullout

Watched

Iran sends toy drone to Obama
Iran sends toy drone to Obama Sun, Jan 29 2012
We are already in new great depression: Paul Krugman
We are already in new great depression: Paul Krugman 5:15am EST
Leftist protesters attack British banks in Buenos Aires
Leftist protesters attack British banks in Buenos Aires Thu, Feb 2 2012

UPDATE 1-Merged Glencore, Xstrata would take aim at iron ore

inShare1
Share this
Email
Print

Related News




Fri Feb 3, 2012 7:58am EST

* Glencore, Xstrata marriage could trigger iron ore M&As

* Iron ore conspicuous in absence from Xstrata stable

* High-margin potential in iron ore hard to resist

By James Regan

SYDNEY, Feb 3 (Reuters) - An $80 billion marriage of commodities trader Glencore and miner Xstrata could lead to a new round of takeovers in iron ore, creating a goliath eager to muscle its way onto one of mining's richest and most closely guarded sectors.

Glencore and Xstrata, which have yet to reach a deal, would together rank as the world's largest thermal coal exporter, the largest zinc producer and third-largest copper miner - but would remain all but non-existent in iron ore mining.

Xstrata wants to get into iron ore, underlined in 2009 by its attempt to buy mining giant AngloAmerican. But it has been thwarted by a scarcity of major new discoveries and a virtual oligopoly among mining giants Vale, Rio Tinto and BHP Billiton, which have no intention of loosening their grip, say industry players and analysts.

"With a fortified balance sheet thanks to Glencore, it's a logical move for Xstrata which should light a fire under the others, like Vale," said an Australian mining executive who asked not to be named.

<snip>