Glencore Xstrata vows greater returns for shareholders

 
Suzie Neuwirth
EWLY merged mining powerhouse Glencore Xstrata began trading today, while wooing investors with the promise of greater returns.

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The FTSE 100 firm told shareholders that it would easily meet and potentially exceed previously announced $500m synergies by cutting costs and selling off non-core assets. Xstrata’s corporate headquarters in Zug and London will be closed and there will be a single head office in Baar, Switzerland.

The company's capex is expected to decline from 2015, with expected guidance of $13bn for 2013, $9bn for 2014 and $7bn for 2015.

As widely predicted, the new management structure is largely composed of Glencore executives, supporting industry views that the merger was in fact more of a takeover.

Glencore Xstrata shares were trading up 4.85 per cent at 15.30 GMT.