By Ben Simmons
Xstrata (LSE: XTA)and Glencore (LSE: GLEN) are to proceed with a rumoured merger that would lead to the creation of Glencore Xstrata International PLC.
Glencore is currently the world’s biggest commodities firm and the merger with FTSE 100 mining giant, Xstrata would create the world’s biggest mining and commodities firm.
With a combined value of $90bn, the merger would be the biggest in the history of FTSE.
Although Glencore are more highly valued than Zstrata, both companies are touring the merger as ‘an all-share merger of equals’. The BBC, however report that at least two shareholders would vote to block the move as the combination would, they feel, undermine share values.
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