Glencore and Xstrata confirm $90bn merger

Mining company Xstrata has formally announced its intention to merge with Glencore, the world's largest commodities trader, creating a commodities 'powerhouse'.

The deal this morning means the combined business would be worth $90bn (£56bn) of which Xstrata makes up $39bn, the BBC reported this morning. The deal values Xstrata shares at £12.90 compared with the £11.00 which they traded at before the announcement of the deal last week. The deal comes as Xstrata reveals its profits climbed 20% in 2011, to $5.9bn (£3.8bn). Xstrata shareholders will be allocated a 45% stake in the new firm. Chief executive of Xstrata Mick Davis will head up the new firm and Glencore's boss Ivan Glasenberg will be deputy chief executive. The deal was descr...