Glencore International AG is looking at a possible merger with Xstrata Plc that would create one of the largest global mining and trading companies, according to the U.K. Telegraph.
The combined entity would be worth 55 billion pounds ($84 billion). According to the report, Glencore, the world’s biggest commodities trading company, would be part of a “reverse takeover” with Xstrata, and then reduce its stake in the group.
Xstrata’s management would remain in power, including current Chief Executive Officer Mick Davis, and retain control over the company. So far, Glencore has made no formal proposal of merger.