Glencore Completes Merger With Xstrata to Form World's Fourth Biggest Miner

By Diana Kinch

LONDON--Mining and metals group Glencore International PLC has completed its long-awaited merger with Xstrata PLC to form the world's fourth biggest mining company and the world's biggest commodities trader.

Glencore said in a statement Thursday that the merger between the two companies is now effective and the entire issued share capital of Xstrata is now owned by the Glencore Group. Shareholders party to the merger scheme will receive 3.05 new Glencore shares for each scheme share held.

The change of name of Glencore International PLC to Glencore Xstrata PLC is expected to become effective in Jersey later Thursday, Glencore said.

Glencore Xstrata, with a market value of around $76 billion, will be a major world class mining corporation, competing with Vale (VALE, VALE5.BR), BHP Billiton PLC (BHP.LN, BBL), Rio Tinto PLC (RIO.LN) and Anglo American PLC (AAL). The merger has been completed following the gaining of approvals from regulatory and anti-trust bodies in the European Union, U.K., South Africa and in China. China's authority, Mofcom, ruled last month after 14 months of deliberations that Glencore's $5.2 billion Las Bambas copper project in Peru must be put up for sale as a condition for the merger to proceed.

Glencore Xstrata's shares are expected to start trading on the London Stock Exchange on Friday and the listing of Xstrata shares is to be cancelled on Friday in London and on May 6 on the Swiss Stock Exchange, Glencore said.

Write to Diana Kinch at [e-mail]

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