$82 Billion Glencore Xstrata Megamerger Near

Tyler Durden's picture


In what could be the biggest merger news of the year, Bloomberg reports that Glencore and Xstrata could be close to a merger:


It is unclear if this merger will suffer the same fate as the NYSE-Deutsche Borse, but if successful it will surely have a significant impact on commodity prices across the world as yet another monopoly is formed and changes the layout of the playing field once again. More interesting will be the response by the investment banks which have recently also gotten aggressively into the commodities space.

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Wed, 02/01/2012 - 23:43 | 2118853 slow_roast
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SKYNET is coming bitchez!

Wed, 02/01/2012 - 23:43 | 2118856 Careless Whisper
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The Careless Whisper Evening News Update & Threadjacking


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Wed, 02/01/2012 - 23:49 | 2118871 blunderdog
blunderdog's picture

boom.  datamine.

Thu, 02/02/2012 - 07:34 | 2119350 jeff montanye
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Glencore shares have fallen almost 17 percent since its listing, but it has still outperformed the drop in Xstrata.



Wed, 02/01/2012 - 23:43 | 2118857 UP Forester
UP Forester's picture

It's already here.  They just haven't told you, yet.

Wed, 02/01/2012 - 23:59 | 2118885 ACP
ACP's picture

Odd. I thought it was already here.

Johnny Bernanke has already jacked the market. I think the beard is part of the secure network.

Thu, 02/02/2012 - 07:28 | 2119346 jeff montanye
jeff montanye's picture

ben shalom to you.  reeky cheeky cliquey to the rest of us.

Wed, 02/01/2012 - 23:47 | 2118864 The Deleuzian
The Deleuzian's picture

Holy Cow...That's like half the universe...I guess the other half would be Rio Tinto And BHP...

Thu, 02/02/2012 - 00:45 | 2118991 Oh regional Indian
Oh regional Indian's picture

Seriously Del. Broken hill Properties, how fitting eh?


Thu, 02/02/2012 - 01:05 | 2119035 The Deleuzian
The Deleuzian's picture

Those bastards own a lot of expensive holes in the ground!

Wed, 02/01/2012 - 23:53 | 2118881 RobotTrader
RobotTrader's picture

Glencore is another perennial PigMan firm.


Another nail in the coffin for free markets, those guys are going to control a lot of markets pretty soon.

They will be able to steer prices at will, using paper shorting, manipulation, and all kinds of schemes.

Wed, 02/01/2012 - 23:57 | 2118886 The Deleuzian
The Deleuzian's picture

Wouldn't want to stick my neck out...but...This may be the 'Pac Man' event in the resource sector at large so many have been looking for...Lots of small companies out there with pretty big deposits...

Thu, 02/02/2012 - 02:02 | 2119117 old naughty
old naughty's picture



Bullish for minor mining, for a while anyways.


Thu, 02/02/2012 - 05:31 | 2119289 IrritableBowels
IrritableBowels's picture


Your account has been hacked!

Thu, 02/02/2012 - 00:00 | 2118893 Atomizer
Atomizer's picture

120 billion Timmay temporary capital vs 82 billion merger slush fund shell company.

Thu, 02/02/2012 - 00:03 | 2118901 chump666
chump666's picture

Bubble markets overkill.

The PIIGS take out Europe and China (collapse) takes out these guys and their BS CAPEX plans.  Credit markets take out the world. 

Industrial commodities will be slaughtered in 2012

Doomsday trade so close...I can smell it.

Thu, 02/02/2012 - 00:04 | 2118903 DoChenRollingBearing
DoChenRollingBearing's picture

Big IPOs (Facebook) and mergers (this story) are often a sign of a market top.

Watch out below, bitchez!

Thu, 02/02/2012 - 00:16 | 2118931 chump666
chump666's picture


The market has become too optimistic. 

Thu, 02/02/2012 - 00:28 | 2118957 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Agreed.  But....

The Fed is printing like there is no tomorrow, targetting an inflation number that doesn't exist.

Europe is printing like there is no tomorrow, targetting a banking panic that can not be solved.

Japan is printing like there is no tomorrow, targetting several lost decades that are never coming back.

WHen they say something is priced in, they are most likely subconsciously refering to inflation.  Inflation is about to get so out of hand it is going to mind fuck the world.

Thu, 02/02/2012 - 01:11 | 2119050 DoChenRollingBearing
DoChenRollingBearing's picture

You and I know there is no tomorrow.

Thu, 02/02/2012 - 01:48 | 2119102 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Turn off your mind, relax, and float downstream:  It is not dying.  It is not dying.  Lay down all thoughts, surrender to the void:  It is shining, it is shining.  Yes you may see the meaning of within.  It is being, it is being. 

Love is all and love is everyone:  It is knowing.  It is knowing.  And ignorance and hate mourn the dead:  It is believing, it is believing.  But listen to the color of your dreams:  It is not leaving, it is not leaving.  So play the game "Existence" to the end, of the begining, of the begining, of the begining, of the be....

-Tomorrow Never Knows

Thu, 02/02/2012 - 07:38 | 2119357 TheFourthStooge-ing
TheFourthStooge-ing's picture

Smokin' live cover of Tomorrow Never Knows by 801 (Phil Manzanera, Brian Eno, et al.) from 1976:



Thu, 02/02/2012 - 05:28 | 2119287 falak pema
falak pema's picture

Tomorrow knows there is no you...is more appropriate as statement. Alas, as the ZH motto says it for us all.

It reminds me of the last scene in "For whom the bell tolls"..with Ingrid B and Gary C. 

Thu, 02/02/2012 - 01:14 | 2119057 chump666
chump666's picture

Yes you are right.  But inflation will eat into company profits like a parasite.  I can't see stocks getting too juiced on this, the market, IMO, is rallying on fudged stats via China and Europe and the ECB all out buying of Spanish and Italian debt. Our top is in, but could go sideways for a little but until something blows. And we got a good spread to choose from: China, Europe and the US.

Thu, 02/02/2012 - 01:58 | 2119115 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

If they were paying wages, but corporations have cut the fat from the hog, and the upper management can keep all of the profits, while doling out dividends to meet 7% YoY (nominal). 

The problem lies with the people who can't afford to suck on the corporate tit.  If you can't, then you are the runt.  You know what happens to the runt?  It dies.  It  dies, or it becomes the alpha.  Is this country, America, is it, being fat and lazy and complacent like it is, going to become the alpha it needs to be to overthrow the fascist government, the fascist corporate hellhole it has become?

Thu, 02/02/2012 - 02:12 | 2119127 chump666
chump666's picture

Well with what you said, I would think that 2012 is going to be a year of riots/protests and mayhem.  No doubt there at all.  Inflation makes people go bonkers and EZ payback will be due soon, not to forget OWS part 2 kicking in.

Re: Companies and inflation.  No they hate it.  It pushes up operational costs, real interest on credit eats profits etc etc etc.  If they are BIG, worst for them.   They cut staff, sit on cash and become useless.  So shares won't go into hyperspace.

F*ck governments.  Smug a-holes, looking at the European leaders, they have all gone mad. 


Thu, 02/02/2012 - 01:28 | 2119076 prains
prains's picture

Glencore's IPO was way better timed than Fartbook's

Thu, 02/02/2012 - 03:15 | 2119184 HungrySeagull
HungrySeagull's picture

That sound is the structural foundation weakening under fatique holding the markets.


The roar of the positive news has so far drowned out the thunderous creaks and cracking....


And the Theater continues to keep the show going despite a bit of smoke.


I wonder what a total modern day collapse will look like?

Thu, 02/02/2012 - 00:12 | 2118911 DormRoom
DormRoom's picture

Glencore-Xstrata would be a commodity cartel with BHP & Vale.  Glencore-Xstrata control numerous metal warehouses, so can control the future curves, leveraging up on derivatives, and financial engineering, for greater synthetic returns.


The disconnect between economic reality & the simulcrum from easy credit continues.


Thu, 02/02/2012 - 00:13 | 2118924 RobotTrader
RobotTrader's picture

Yep they will be rattling around the metals markets like King Kong shaking a huge piece of sheet metal.


Hundreds of trading firms will be going broke trying to trade against this monster.

They will be pulling off unspeakable spikes and clothesline drops, taking everyone's money.

Will probably end up being one of the most profitable companies on the planet.

A PigMen's Paradise.

Thu, 02/02/2012 - 00:17 | 2118932 UP Forester
UP Forester's picture

Does this mean that there will be manipulation in the metals market if this merger goes through?


Or are they going to stay free?


Thu, 02/02/2012 - 00:30 | 2118962 Mr Lennon Hendrix
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They have no niche.  They won't have the control you dream of.

Thu, 02/02/2012 - 10:05 | 2119556 oddjob
oddjob's picture

Objects in mirror may be closer than they appear.

Thu, 02/02/2012 - 00:15 | 2118929 The Deleuzian
The Deleuzian's picture

Xstrata bought out Sabina's Hackett River last year...Falconbridge a few years back..The Kidd mine...Brunswick #12...That's like what a 100 years of production...You're absolutely right...

Thu, 02/02/2012 - 03:28 | 2119190 BorisTheBlade
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And then it will end up like Enron and MF Global.

Wed, 02/08/2012 - 22:51 | 2140333 Silver Bug
Silver Bug's picture

Should be interesting.


Pandora Style Beads

Thu, 02/02/2012 - 00:09 | 2118912 Fanatic
Fanatic's picture


One of Clinton's criminal buddies is behind Glencore.

Thu, 02/02/2012 - 00:29 | 2118960 4horse
4horse's picture

. . . you might be as behind as clinton . . .



like merging Roth with Schild


which names neither the child

         nor the obvious





Thu, 02/02/2012 - 00:34 | 2118968 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The Rotheschildes lick goat balls.  Litterally.

Thu, 02/02/2012 - 01:12 | 2119053 DoChenRollingBearing
DoChenRollingBearing's picture

Family tradition?

Thu, 02/02/2012 - 00:47 | 2118992 AgShaman
AgShaman's picture

Maybe Tyler missed the memo....

You ain't supposed to talk about Glencore no-more


Thu, 02/02/2012 - 03:41 | 2119202 4horse
Thu, 02/02/2012 - 00:14 | 2118926 AU5K
AU5K's picture

Glentrata or Xscore?

Thu, 02/02/2012 - 00:23 | 2118942 chump666
Thu, 02/02/2012 - 00:24 | 2118944 Atomizer
Atomizer's picture

Just for the DHS spooks. When the system goes from human to animal, your fiat holdings will be purchased for pennies on the dollar. You will be forced to use the new currency fiat and have less money than you did under the old system.

Your very tracking words will effect your financial well being.  The very peeps you protect will fleece you as well. Wake up and smell the coffee. We love you DHS, having a important job is exceptional. Not understanding economics will catch you by surprise. Mark my words!

Thu, 02/02/2012 - 01:16 | 2119060 chump666
chump666's picture

Meanwhile the US goes for broke

* S&P - Estimated US default rate edged higher to @2.37% in January.

Thu, 02/02/2012 - 01:46 | 2119100 jonjon831983
jonjon831983's picture

Bullish for lawyers and if/when government swoops in to break up the monopoly it will also be bullish for lawyers.

Thu, 02/02/2012 - 03:54 | 2119213 4horse
4horse's picture

. . . government swoops in to break up the monopoly . . .

if/when one comes to know who this is, you'll have anyway awoken in their Monopolis 

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