By: Ringo Bones
At the moment after their latest meeting, the board of the
mining group Xstrata is recommending their shareholders to back the Glencore
merger. But shareholders will have to wait later this October to vote in their
decisions. Currently estimated at 80 billion US dollars the slated corporate
merger could be the biggest one yet for 2012 – it is even worth more money than
the recent Facebook IPO. And given the scale of such merger, does it signal
that the global economy is already passed the worst effects of the recent
global economic slowdown?
Given the global mining sector is currently – more or less –
in the doldrums – due to the recent economic slowdown of Mainland China, the
merger of the mining giant Xstrata with the natural resource and commodities
trading house Glencore seems to mirror that of the bullish economic climate of
the go-go 1980s. There’s a distinct possibility that such merger could really
happen because accountants from both Glencore and Xstrata are already examining
each other’s books to check the extent of how much the figures are “fudged”.
One of the principal underwriter’s of the Glencore – Xstrata merger is the
Qatari Hedge Fund group. And if both parties manage to tackle existing
regulatory hurdles, this could indeed be 2012’s biggest corporate merger.
1 comment:
Either the Glencore-Xstrata merger will create the biggest mining consortium the world has ever seen or will not be allowed by regulators because of established antitrust laws.
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