Shares rise as Xstrata backs Glencore merger

<p>Shares in Glencore and Xstrata are higher as a merger agreement is reached.</p>

Shares in Glencore and Xstrata have climbed on the London Stock Exchange (LSE) this morning (October 1st), as Xstrata backs the merger terms offered by the trader.

The mining group's shareholders originally opposed the business deal, but Glencore raised its offer and now the acquisition is set to form one of the world's biggest metals and commodities organisations, the BBC reports.

Shareholders will now vote on whether to accept the Xstrata offer of 3.05 Glencore shares per Xstrata share.

Glencore chief Ivan Glasenberg has welcomed the deal recommended by Xstrata directors.

Xstrata chief executive Mick Davis commented: "A merger will fuse the respective strengths of the two companies into a unique natural resources company."

He added that the deal will create a "superior shareholder value".

At 10:55 BST, Glencore shares on the LSE were up 0.7 per cent to 345.75p, while
Xstrata shares rose three per cent to 986.60p.

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