What Xstrata digs out of the ground it sells to Glencore, which buys it and sells around the world

The strategy behind Glencore’s proposed merger with Xstrata is easy to see: what Xstrata digs out of the ground (coal, copper, nickel, ferrochrome, vanadium and zinc) it sells to Glencore, which buys it and sells around the world (alongside a range of other commodities including wheat, sugar, oil and sugar). The companies’ headquarters are just two miles apart in Switzerland and they operate in most of the same areas around the world. And in addition, Glencore already owns 34% of Xstrata. Here are some comparison facts: