1. Merge vs.
Alliance
Kelly Vandenbussche
Office management
Executive management assistant
Howest Kortrijk

2. Merge Glencore
– Xstrata

3. Glencore

4. Glencore
• Headquartered in Baar, Switzerland
• One of the world's leading integrated producers
and marketers of commodities
• 54,800 people in 30 countries

5. Glencore
• Worldwide activities in:
o Production
o Sourcing
o Processing
o Refining
o Transporting
o Storage
o Financing and supply of metals and minerals
o Energy products
o Agricultural products

6. Glencore
• History
o Founded in 1974 by Marc Rich
o Name: Marc Rich + Co AG
o 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

7. 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 companies
o 1994: New name: Glencore International
o 2011: Public company:
• Primary listing on the London Stock Exchange
• Secondary listing on the Stock Exchange of Hong Kong

8. Glencore
Aluminium Coal Grains

9. Xstrata

10. Xstrata
• Headquartered in Zug, Switzerland
• One of the world’s largest mining and metals
companies
• 70,000 people in 20 countries

11. Xstrata
• Major producer of:
o Coal
o Copper
o Nickel
o Primary vanadium
o Zinc
• World's largest producer of ferrochrome

12. Xstrata
• History
o Founded in 1926 in Switzerland as Südelektra
o 1990: Marc Rich + Co AG (Glencore) became its majority
shareholder
o 1999: New name: Xstrata AG
o 2002: First listed on the London Stock Exchange
o 2003: Doubled in size:
• $2.9 billion takeover of Australian copper, zinc and lead miner MIM
Holdings

13. 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)

14. Xstrata
Ferrochrome Copper Nickel
Zinc

15. 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

16. 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)

17. Merge Glencore – Xstrata
Mick Davis Ivan Glasenberg