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.

Find the latest spread betting strategies for the FTSE 100 at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.