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Replies to post #4212 on The Rising Influence of Rising Affluence
02/03/12 11:42 AM
Glencore, Xstrata marriage could trigger iron ore M&As
02/06/12 8:42 AM
A Glencore-Xstrata merger would add a catalyst [to mining M&A]. Combined, the company would have a market value of roughly $80 billion. But more important…it would control one-third of the market for thermal coal used to generate electricity and become the world's largest producer of zinc, with 15% of overall production. The new company also would vie with midsize Freeport-McMoRan Copper & Gold Inc. for the title of the world's second-biggest copper producer, behind state-owned Codelco of Chile.
As fears of a global financial and economic meltdown recedes, megamergers among top 10 players—possibly even a renewed effort by BHP to acquire Rio Tinto—are more likely, industry bankers and analysts say [maybe]. The Anglo-Australian miners and Brazil's Vale together control 70% of the world's seaborne iron-ore trade.
02/07/12 11:41 AM
The new company, to be called Glencore Xstrata International PLC, could dramatically change the face of the natural-resource industry. It would for the first time marry a major mining operation with a big trader of everything from metals to oil and grains, and generate more than $200 billion in annual sales from operations in five continents.
… Glencore and Xstrata billed the deal as a merger of equals, even though Xstrata investors are to receive 2.8 Glencore shares for every share they own, reflecting a premium of 8% over Xstrata's share price before the potential deal surfaced last week and 15% taking into account a rise in Glencore shares since then. The deal will give Xstrata shareholders other than Glencore, which already has a 34.4% stake in the miner, a 45% stake in the combined group, which would be the world's fourth-largest miner. [The three larger companies in terms of mining revenue per se are are BHP, RIO, and VALE.]
02/28/12 9:01 AM
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