Merge vs. Alliance

Kelly VandenbusscheOffice management

Executive management assistantHowest Kortrijk

Merge Glencore –

Xstrata

Glencore

Glencore• Headquartered in Baar, Switzerland• One of the world's leading integrated producers

and marketers of commodities• 54,800 people in 30 countries

Glencore• Worldwide activities in:

o Productiono Sourcingo Processingo Refiningo Transportingo Storageo Financing and supply of metals and mineralso Energy products o Agricultural products

Glencore• History

o Founded in 1974 by Marc Richo Name: Marc Rich + Co AGo Initially focused on physical marketing of ferrous and non-

ferrous metals, minerals and crude oil, before expanding into oil products shortly thereafter

o 1981: Acquired an established Dutch grain trading company:• Basis for its Agricultural Products business group

o 1987: First equity investment in an industrial asset:• Acquired 27% of the Mount Holly aluminium smelter in the United

States

Glencore• History

o 1988: First controlling interest in an industrial asset :• Via their purchase of a 66.7% interest in a zinc/lead mine in Peru

o Significant stakes in many publicly-listed companieso 1994: New name: Glencore Internationalo 2011: Public company:

• Primary listing on the London Stock Exchange• Secondary listing on the Stock Exchange of Hong Kong

GlencoreAluminium Coal Grains

Xstrata

Xstrata• Headquartered in Zug, Switzerland • One of the world’s largest mining and metals

companies• 70,000 people in 20 countries

Xstrata• Major producer of:

o Coalo Coppero Nickelo Primary vanadiumo Zinc

• World's largest producer of ferrochrome

Xstrata• History

o Founded in 1926 in Switzerland as Südelektrao 1990: Marc Rich + Co AG (Glencore) became its majority

shareholdero 1999: New name: Xstrata AGo 2002: First listed on the London Stock Exchangeo 2003: Doubled in size:

• $2.9 billion takeover of Australian copper, zinc and lead miner MIM Holdings

Xstrata• History

o 2004: Closed its recently purchased Windimurra Vanadium plant in Western Australia

o 2005: Purchased a 19.9% stake in Falconbridge Limited (Diversified Canadian mining company producing copper, nickel, aluminum, lead and zinc)

o 2006: Expansion of the McArthur River zinc mine (Near the popular fishing destination of Borrooloola)

Xstrata Ferrochrome Copper Nickel

Zinc

Merge Glencore – Xstrata

• $90 billion merger (68,8 miljard euro) • Name: Glencore Xstrata International• Xstrata shareholders receive 2.8 Glencore shares

for each of their shares • Cost savings of $500 million in the first full year• World's fourth largest global diversified natural

resource company• 33 countries

Merge Glencore – Xstrata

• World's third-largest copper producer, fourth-largest nickel producers, global leader in thermal coal, ferrochrome and integrated zinc production

• Turnover 2 companies together: $209.4 billion • CEO: Mick Davis (CEO Xstrata)• President: Ivan Glasenberg (CEO Glencore)

Merge Glencore – Xstrata

Mick Davis Ivan Glasenberg