MarketLine Blog

Posts tagged to Metals & Mining

Glencore Xstrata: Commodity Prices and Merger aftershocks

MarketLine

When Glencore and Xstrata merged, it created the fourth largest mining company globally and an integral part of many commodities’ supply chains. It looks now however that Xstrata was overvalued and the company could be facing an $8bn loss on mining assets due to weaker conditions in the commodity industry. Following the 16-month acquisition saga, in the company’s first set of results saw a 2% dip in revenue for the first of 2013 compared to last year, and a 9% drop in EBITDA. Two significant macroeconomic events have contributed to… Read more