Following the recommendation of Xstrata’s board of directors to its shareholders to back the merger terms offered by the commodities trader, a vote will now be held on whether to accept the offer of 3.05 Glencore shares for every Xstrata share.
Should said offer by accepted, the merger is expected to bring together the respective strengths of the two companies, thus creating a unique natural resources company boasting a virtually unparalleled level of experience, industry know-how and expertise.
"The strategic rationale for combining Xstrata and Glencore remains highly compelling," said Xstrata's chief executive Mick Davis. “It will also resolve Xstrata's ownership structure in a way that I believe will create a superior shareholder value as part of a larger, more diverse company with an enhanced ability to grow and create value for its owners."
