Global commodities trader and metals producer, Glencore Xstrata Plc had announced it had raised an estimated USD2 billion in savings since it took over the operations of Xstrata Plc. The company is now run by billionaire Ivan Glasenberg and the amount saved is four times the forecasted amount prior to the takeover.
The Glencore acquisition was completed last May and would generate a total of USD2 billion in savings by next year. According to a statement by the Baar, Switzerland based firm, the said savings would include USD450 million from marketing operations while USD175 million from financial savings.
The purchase done resulted in the creation of the fourth largest mining company in the world. The company added coal, copper, nickel and zinc mines to the trading empire of Glencore. The deal was projected to create cost savings above the USD500 million, as confirmed by its CEO last May. Morgan Stanley on the other hand estimated the creation of USD800 million worth of savings, according to a report it had made on the transaction.
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