Glencore sees strong US and Chinese demand – MoneyWeek

DemandintheUShascontinuedtostrengtheninareassuchasautomobilesandaerospace,Chinesedemandcontinuestobehealthy,whileEuropeanconditionsremaingenerallyweaker,thegroupsaid。

Inthemarketingofmetalsandminerals,thegroupsaidthatflatpricesandphysicalpremiaforcoremetalsweregenerallyhealthyduringthefirstthreemonthsoftheyear,although,insomemetals,thelattermovedinoppositedirectionsinOECDversusChinesemarkets,reflectingdifferingshort-terminventoryconditions。

ThegroupsaidthatitscommittedliquidityheadroomatMarch31stwasinexcessof$6。

5bn,similartolevelsattheendof2011。

Glencore,whichproposedamergerofequalswithmininggroupXstratainFebruary,saiditexpectsreceiptofallregulatoryapprovalstoenablecompletionbythethirdquarterquarterofthisyear,aspreviouslyannouncement。

ShareholdermeetingstoapprovethemergerareexpectedtobeconvenedinearlyJuly。

TheproposedmergerwithXstratawill,ifsuccessful,provideimmediatesynergybenefitsincludingremovingtheconstraintswhichthecurrentownershipstructureimposes。

Togetherwehavequantifiedthemeasurablepre-taxsynergiesasbeingatleast$?

500min2013。

Inaddition,bothpartiesseematerialscopeforportfoliooptimisationtodrivemoreefficientcapitalallocationacrossthecombinedentity,thefirmsaid。

BC

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