Glencore Xstrata vows greater returns for shareholders

 
Suzie Neuwirth

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

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.