Glencore was the largest commodities trader in the world and Xstrata was one of the globe's biggest and most diversified miners. Together - the companies would create an full service commodities powerhouse.Reuters
Glencore was the largest commodities trader in the world and Xstrata was one of the globe's biggest and most diversified miners. Together - the companies would create an full service commodities powerhouse.ReutersXstrata was the world's fourth largest global copper producer. By teaming up with Glencore, the companies would create the world's third largest producer of the red metal.ReutersXstrata began its journey in commodities, just over a decade ago, with a collection of zinc and ferroalloy assets and coal mines bought from Glencore. As you can see, without realising, it was a partnership in the making.ReutersIn February 2012, Glencore and Xstrata agreed to an all-share merger, with the commodities trader offering 2.8 new shares for every Xstrata share.ReutersAfter the announcement, Qatar's sovereign wealth fund quietly built its stake in Xstrata to nearly 11%, in order to become the mining group's third-largest shareholder behind Glencore and asset manager BlackRock. Later that year, it proved to be one of the key obstacles in getting the merger completed. It flexed its muscles and demanded better deal terms.ReutersIn October last year, Xstrata gave its blessing to the revised bid from Glencore. Finally on 20 November 2012, Glencore shareholders vote in favour of its bn takeover of Xstrata.Reuters
The Glencore Xstrata merger marked one of the world's largest tie-ups in recent history.
While the newly combined group's shares started trading on the London Stock Exchange on Friday, it took a long time to get there.
IBTimes UK decided to take a closer look at the massive merger and provide a guide to one of the most complex M&A deals in the financial markets.
