Why does glencore want to merger with xstrata

Digital Be informed with the essential news and opinion. Delivery to your home or office Monday to Saturday FT Weekend paper — a stimulating blend of news and lifestyle features ePaper access — the digital replica of the printed newspaper. Team or Enterprise Premium FT. Pay based on use. Does my organisation subscribe? Group Subscription.

Premium Digital access, plus: Convenient access for groups of users Integration with third party platforms and CRM systems Usage based pricing and volume discounts for multiple users Subscription management tools and usage reporting SAML-based single sign-on SSO Dedicated account and customer success teams.

Learn more and compare subscriptions content expands above. Full Terms and Conditions apply to all Subscriptions. Peter Rudd says Australia's two big miners also operate in many commodities where Xstrata doesn't. Now Xstrata looks as though it's going to team up with Glencore.

Search AM The full story More to add? Related Links ABC takes no responsibility for the sites these links take you to. Follow us Podcasts Subscribe to our Daily or Story podcast. All About Podcasting. Davis; John Bond, chairman; and Trevor Reid, chief financial officer, to hold the same positions at the new company. It is also about business expertise. Xstrata is a powerhouse in mining, with large positions in copper, coal and zinc production.

While has some mining operations, its main focus is trading. Glencore has unrivaled intelligence on the global supply and demand of materials like wheat, oil and copper. Those are fundamentally different businesses. Mining investments are long term, often taking a decade or more to generate a return.

Trading relies on quick returns based on rapid, sometimes minute-by-minute decisions. The mining business would dominate the new company, accounting for 84 percent of operating profits based on earnings.