There was big news in the business sector today, as the mining giant Xstrata and the commodities trader Glencore International, announced that they’re in talks over a possible merger.
The merger is reported as a "merger of equals," which caused the Xstrata share price to jump by 11%; the share jump was also experienced by Glencore International, who saw a rise of 3.6%. If the merger between the two companies meets business law requirements and goes ahead, the resulting company is set to have a combined value of $80bn.
The news was tempered by an Xstrata spokesman though, who pointed out that there was no certainty that any offer would be made and that the talks are just preliminaries.
Now that Glencore International has initiated talks, they have until 1 March to make a formal offer; in line with UK takeover rules.
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.
Setfords Solicitors have locations throughout the country, for a full list of locations please contact us, or visit our area pages, such as our Solicitors in London, or Manchester Solicitors.
