Xstrata and Glencore 'close to merger'
It has been reported that Glencore and Xstrata are close to merging.
Mining firm Xstrata and commodities trading house Glencore may have used international business negotiation techniques, as the organisations are reportedly close to a merger that could result in the creation of a company worth around $80 billion (£50.48 billion).
A source told the Financial Times that an announcement could be made early next week, before Xstrata reveals its annual results.
The insider said the companies are closer to merging than at any time within the last five years.
However, a statement released by the mining specialist confirmed it was in discussions about a merger of equals with Glencore, but claimed it could not be certain that any offer is going to be made by the group.
The talks "may or may not lead to an offer being made by Glencore for Xstrata", the enterprise remarked, adding any further announcements on this matter will be issued when it is deemed appropriate.
Glencore must reveal whether or not it intends to make an offer by March 1st 2012.
Posted by Ken Hayes
Souce: Press reports, February 2nd