LONDON - Shares in Glencore Xstrata rose on its first day of trading on Friday, as investors banked on potential dividends and future cost savings from one of the largest deals in recent years.
After more than a year in the making, the commodities trader Glencore International has finally completed its $30 billion all-share takeover of the mining giant Xstrata.
On its first day of trading on Friday, the newly combined company’s stock price rose more than 4 percent ahead of an investor presentation by Glencore Xstrata’s new chief executive, Ivan Glasenberg. The firm’s shares also will start trading in Hong Kong on Monday. The company has a market valuation of almost $70 billion.
Mr. Glasenberg, the former head of Glencore, outmuscled his counterpart at Xstrata, Mick Davis, for the top job at the newly merged company following a shareholder revolt over the initial takeover bid.
After Qatar Holding, which owns a 12 percent stake in Xstrata, balked at Glencore’s original 2.8-share proposal, the commodities trader raised its offer to 3.05 of its own shares for each Xstrata share.
In response, Glencore also demanded that Mr. Glasenberg become chief executive earlier than had previously been envisioned.
Attention will now shift to how the combined company will streamline its operations and pare back on new investment because of falls in the global commodity markets.
Some analysts also have speculated the Glencore Xstrata may pursue further acquisitions to take advantage of depressed valuations of rivals.
Deutsche Bank, Goldman Sachs, JPMorgan Chase and Nomura Bank advised Xstrata on the deal, while Citigroup and Morgan Stanley advised Glencore. Lazard advised Qatar Holding.
