(Updates with revised figure of $66 billion for market cap of
Glencore Xstrata, in fourth paragraph.)
By Diana Kinch
LONDON--Mining and metals group Glencore International PLC has
completed its long-awaited merger with Xstrata PLC to form the
world's fourth biggest mining company and the world's biggest
commodities trader.
Glencore said in a statement Thursday that the merger between
the two companies is now effective and the entire issued share
capital of Xstrata is now owned by the Glencore Group. Shareholders
party to the merger scheme will receive 3.05 new Glencore shares
for each scheme share held.
The change of name of Glencore International PLC to Glencore
Xstrata PLC is expected to become effective in Jersey later
Thursday, Glencore said.
Glencore Xstrata, with a market value of around $66 billion,
will be a major world class mining corporation, competing with Vale
(VALE, VALE5.BR), BHP Billiton PLC (BHP.LN, BBL), Rio Tinto PLC
(RIO.LN) and Anglo American PLC (AAL). The merger has been
completed following the gaining of approvals from regulatory and
anti-trust bodies in the European Union, U.K., South Africa and in
China. China's authority, Mofcom, ruled last month after 14 months
of deliberations that Glencore's $5.2 billion Las Bambas copper
project in Peru must be put up for sale as a condition for the
merger to proceed.
Glencore Xstrata's shares are expected to start trading on the
London Stock Exchange on Friday and the listing of Xstrata shares
is to be cancelled on Friday in London and on May 6 on the Swiss
Stock Exchange, Glencore said.
Write to Diana Kinch at diana.kinch@dowjones.com
