Xstrata in merging deal with Glencore

Xstrata, Swiss mining company, confirms in a report on its website that it in merging deal with Glencore, commodities trader.

“Glencore being such a dominant trader and marketer of commodities, and Xstrata being such a strong operator of difficult assets, I think it creates enormous value,” Prasad Patkar, who helps manage about $1 billion at Platypus Asset Management Ltd. in Sydney, said by phone before the statement. “On one end you have great mining expertise, on the other you’ve got great marketing expertise. Two and two together should make five.”

According to the experts, the merger deal could be of $80 billion. Moreover, the transaction could generate $794 million in savings as reported by Credit Suisse Group AG in October.

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