What Possible Glencore, Xstrata Merger Means for Iron Ore
Reuters reported a merger between Glencore (LSE:GLEN) and Xstrata (LSE:XTA) will likely target iron ore as high margins tempt the potential mining behemoth.
Reuters reported a merger between Glencore (LSE:GLEN) and Xstrata (LSE:XTA) will likely target iron ore as high margins tempt the potential mining behemoth.
As quoted in the market news:
Glencore and Xstrata, which have yet to reach a deal, would together rank as the world’s largest thermal coal exporter, the largest zinc producer and third-largest copper miner – but would remain all but non-existent in iron ore mining.
Xstrata wants to get into iron ore, underlined in 2009 by its attempt to buy mining giant AngloAmerican. But it has been thwarted by a scarcity of major new discoveries and a virtual oligopoly among mining giants Vale, Rio Tinto and BHP Billiton, which have no intention of loosening their grip, say industry players and analysts.