Glencore agrees to buy Xstrata
Commodities supplier Glencore International has agreed to buy Xstrata in an agreed all-share merger of equals deal.
The deal values the target at $62bn in the biggest mining takeover.
Glencore, which has 34% stake in Xstrata, has offered 2.8 new shares for each Xstrata share.
Xstrata Chief Executive Officer Mick Davis will be CEO of the combined group and Glencore CEO Ivan Glasenberg will be deputy CEO and president.
The companies said that the plan would create an entity with sales of $209bn, reports Bloomberg.
Xstrata shareholders will hold 45% in the combined entity, to be known as Glencore Xstrata International which will be headquartered in Switzerland.
The companies said that the new entity will form a $90bn natural-resources group, fully integrated from mining, processing, storage, freight and logistics to marketing and sales.
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