Glencore has been approached by Xstrata

Xstrata has announced in a report that it is going to make a merger deal with Glencore.

Xstrata is a Swiss minig company and Glencore is a commodities trading company and one of the largest miners of copper and thermal coal.

“Glencore being such a dominant trader and marketer of commodities, and Xstrata being such a strong operator of difficult assets, I think it creates enormous value,” Prasad Patkar, who helps manage about $1 billion at Platypus Asset Management Ltd. in Sydney, said by phone before the statement. “On one end you have great mining expertise, on the other you’ve got great marketing expertise. Two and two together should make five.”

Source:
SayPeople