Glencore-Xstrata merger creates commodities giant

Agriculture, metals and minerals business Glencore International is to merge with mining group Xstrata.

The deal will create a business with a combined world market value of £56bn and which is forecasting 11% annual growth through to 2015.

This is a merger of two complementary businesses with long-standing links, the firms said. Its operations will include processing, storage, freight, logistics and production as well as the commodity trading for which Glencore is best known to UK farmers.

Glencore Grain’s UK farm grain buying is based at Thame in Oxfordshire, while its European trading operations are run from London and Rotterdam. One of the main exporters of grain from Europe, the CIS (WHAT’S THIS?) and Australia, Glencore became a public company in May 2011.

It has 50 offices in 40 countries throughout Europe, North, Central and South America, the CIS, Asia, Australia, Africa and the Middle East.