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$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:

  • GLENCORE SAID TO BE NEAR AGREEMENT TO COMBINE WITH XSTRATA
  • GLENCORE, XSTRATA MAY ANNOUNCE DEAL AS SOON AS THIS WEEK
  • COMBINED XSTRATA, GLENCORE MAY BE WORTH $82 BILLION
  • GLENCORE INT'L RISES AS MUCH AS 4.6% IN HONG KONG

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 | Link to Comment slow_roast
slow_roast's picture

SKYNET is coming bitchez!

Wed, 02/01/2012 - 23:43 | Link to Comment Careless Whisper
Careless Whisper's picture

The Careless Whisper Evening News Update & Threadjacking

 

Gay "Occupiers" Plan To Protest HRC Black-Tie Gala Honoring GoldmanSachs Saturday At Waldorf

http://www.actonprinciples.org/2012/02/01/queer-occupy-wall-street-to-pr...

Congressman Calls For Holder To Resign Over Fast & Furiouso; Introduces Legislation For Special Prosecutor

http://dailycaller.com/2012/02/01/quayle-asks-obama-to-appoint-special-p...

Colorado Politician Claims Immunity For Drunk Driving; She Wasn't Drunk Enough To Forget Secret Law

http://www.rawstory.com/rs/2012/02/01/colorado-republican-faces-question...

NYC Police Arrest 50,000 In 2011 For Marijuana; Claim Everyone Had It In Open View Of A Cop

http://www.nypost.com/p/news/local/pot_arrests_top_in_despite_nypd_29eQV...

Women Can't Change A Tire; Tire Retailer Hired 1,300, None Women; Feds Charge Discrimination

http://thejobmouse.com/2012/02/01/mavis-discount-tire-sued-for-sex-discr...

Netflix Wants To Disclose Your List Of Movies Watched; Pushes Special Law

http://www.aclu.org/blog/technology-and-liberty/will-congress-take-priva...

"I'll Eat Tacos" Says East Haven Mayor In Response To Ending Police False Arrests Of Latinos

http://latino.foxnews.com/latino/politics/2012/01/31/national-hispanic-l...

DARPA Can Put Out A Fire With Electromagnetic Field; VIDEO

http://www.youtube.com/watch?v=TXhdHeNUD1o

Charlie Chaplin "We The People Have Power" VIDEO

http://www.youtube.com/watch?v=BQDowv4wD8U

 

Wed, 02/01/2012 - 23:49 | Link to Comment blunderdog
blunderdog's picture

boom.  datamine.

Thu, 02/02/2012 - 07:34 | Link to Comment jeff montanye
jeff montanye's picture

 

Glencore shares have fallen almost 17 percent since its listing, but it has still outperformed the drop in Xstrata.

http://news.yahoo.com/glencore-nearing-deal-combine-xstrata-report-05191...

 

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

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

Wed, 02/01/2012 - 23:59 | Link to Comment 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 | Link to Comment jeff montanye
jeff montanye's picture

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

Wed, 02/01/2012 - 23:47 | Link to Comment 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 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Seriously Del. Broken hill Properties, how fitting eh?

ori

Thu, 02/02/2012 - 01:05 | Link to Comment The Deleuzian
The Deleuzian's picture

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

Wed, 02/01/2012 - 23:53 | Link to Comment 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 | Link to Comment 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 | Link to Comment old naughty
old naughty's picture

Yup.

http://www.google.com/pacman/

Bullish for minor mining, for a while anyways.

 

Thu, 02/02/2012 - 05:31 | Link to Comment IrritableBowels
IrritableBowels's picture

ALERT

Your account has been hacked!

Thu, 02/02/2012 - 00:00 | Link to Comment Atomizer
Atomizer's picture

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

Thu, 02/02/2012 - 00:03 | Link to Comment 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 | Link to Comment 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 | Link to Comment chump666
chump666's picture

correct.

The market has become too optimistic. 

Thu, 02/02/2012 - 00:28 | Link to Comment 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 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

You and I know there is no tomorrow.

Thu, 02/02/2012 - 01:48 | Link to Comment 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 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

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

http://www.youtube.com/watch?v=ZkCQOdQ0Q8A

 

Thu, 02/02/2012 - 05:28 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment prains
prains's picture

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

Thu, 02/02/2012 - 03:15 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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?

/sarc

Thu, 02/02/2012 - 00:30 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

They have no niche.  They won't have the control you dream of.

Thu, 02/02/2012 - 10:05 | Link to Comment oddjob
oddjob's picture

Objects in mirror may be closer than they appear.

Thu, 02/02/2012 - 00:15 | Link to Comment 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 | Link to Comment BorisTheBlade
BorisTheBlade's picture

And then it will end up like Enron and MF Global.

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

Should be interesting.

 

Pandora Style Beads

Thu, 02/02/2012 - 00:09 | Link to Comment Fanatic
Fanatic's picture

http://en.wikipedia.org/wiki/Marc_Rich

One of Clinton's criminal buddies is behind Glencore.

Thu, 02/02/2012 - 00:29 | Link to Comment 4horse
4horse's picture

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

                       MEGA

 

like merging Roth with Schild

         FRANKENSTEIN

which names neither the child

         nor the obvious

 

         MONSTROSITY

 

 

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

The Rotheschildes lick goat balls.  Litterally.

Thu, 02/02/2012 - 01:12 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Family tradition?

Thu, 02/02/2012 - 00:47 | Link to Comment AgShaman
AgShaman's picture

Maybe Tyler missed the memo....

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

http://www.guardian.co.uk/business/2011/may/19/rise-of-glencore-commodities-company

Thu, 02/02/2012 - 03:41 | Link to Comment 4horse
Thu, 02/02/2012 - 00:14 | Link to Comment AU5K
AU5K's picture

Glentrata or Xscore?

Thu, 02/02/2012 - 00:23 | Link to Comment chump666
Thu, 02/02/2012 - 00:24 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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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