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GLENCORE SHIP COMES IN

20th September 2013

By: Darlene Creamer

  

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IvanGlasenberg’s GlencoreXstrata ship has at last come in and intends to dock good and solid with a secondary listing on the Johannesburg Stock Exchange (JSE) before year-end. GlencoreXstrata sees Africa as a growing market and South Africa as a strong institutional investor base. What GlencoreXstrata does, others are likely to follow, which means that the JSE should take the opportunity to become the stock exchange of choice for investments in copper-rich Central Africa, iron-ore-rich West Africa, an energy-demanding continent and food on tap through agricultural development. Meanwhile, synergies from the merger of Glencore with Xstrata are expected to reach $2-billion, four times higher than initial expectations, with $450-million from marketing synergies, $175-million from financing synergies and $1.4-billion from cost savings.

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