Abstract

The US$ 90 billion merger of Glencore, one of the world's largest diversified physical commodities traders, with Xstrata, a major player in the metals and mining industry, was expected to create a powerhouse in the mining industry. The merger between these two could also reshape the competitive landscape in a majorly oligopolistic metals and mining industry.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the dynamics of the merger between Glencore and Xstrata.
• Determine the merger synergies between Glencore and Xstrata.
• Understand the industry dynamics of metals and mining industry
• Analyze the affect of the merger on the industry competiveness.

Keywords

Exchange ratio, Merger, Acquisition, Synergies, Marc rich & co, FTSE, Glasenberg, Mick davis, Capital expenditure, Shareholders, BHP Billiton, Rino-tinto, Negotiated, Vale S.A., Anglo American, London , Consolidation, Mega merger, Glencore, Xstrata, Credit rating, Game changer, Oligopolize or oligopoly, Physical, Commodities, Trader