Glencore had already said there would be considerable improvements, but the $2bn figure definitely surprised the markets and distracts from the Xstrata writedown, which took the gloss off the merger a bit. I’m interested to see what they’re aiming to do with a secondary listing in Johannesburg.
PAUL KAVANAGH | KILLIK & CO
Glencore’s savings projection of $2bn was definitely a surprise and this number could still be quite a prudent forecast as they’re only just starting to look at the mining business. I think the secondary listing makes sense as so much of their business is in Africa. I don’t think it will impact the London market.
MARC KIMSEY | ACCENDO MARKETS
The timing of the merger and cost-savings could prove incredibly fortuitous. Cutting-the-fat has been the corporate challenge in recent years, with Glencore Xstrata having to play catch up after the merger. A secondary listing in a mineral-rich, developing continent makes Johannesburg a no-brainer.