GLENCORE INTERNATIONAL, the world’s largest publicly traded commodities supplier, sees no signs of an imminent recovery in global economic conditions as it nears completion of a $33 billion takeover of Xstrata Plc.
“We are not assuming any short-term material improvement in global macro conditions,” the Baar, Switzerland-based company said yesterday in its third-quarter statement.
Glencore is seeking to gain complete control of Xstrata by the end of the year to create the world’s fourth-biggest mining company.
The deal, subject to a shareholder vote and regulator approvals, will add coal, zinc, copper and nickel mines to Glencore’s commodity trading business handling oil, metals and agriculture.
Energy and metal prices in October slumped to their biggest monthly loss since May as the global economy grew at the slowest pace since the 2009 recession.
Glencore, headed by former coal trader chief executive Ivan Glasenberg, was little changed at 342.95 pence yesterday morning in London, valuing the company at £24 billion. – (Bloomberg)
