The mining company Xstrata said today that it had received an approach from commodities trader Glencore International that could lead to an all-share merger of the two companies.
“Xstrata Plc confirms that it has received an approach from, and is in discussions with, Glencore International Plc regarding an all-share merger of equals which may or may not lead to an offer being made by Glencore for Xstrata,” the company said in a short statement. It added the obligatory proviso that there could be no certainty of any offer being made.
The announcement followed a report from Bloomberg, which claimed the two companies were close to an agreement on a deal that could value the combined entity at £52bn (US$82.46bn).
Ivan Glasenberg, Glencore’s chief executive, said back in August that the commodities trader was “aggressively” seeking mergers and acquisitions as market valuations fell.