Introducing Glencore, rapacious global lord: A David vs. Goliath battle is brewing in Texas

Giant corporate entities have become so far-flung and impersonal that “human relations” departments have been created within the soulless structures to cloak the fact that there’s really nothing human about them. HR is mostly known for sending the corporate rank and file peppy motivational memos that boil down to: “The beatings will continue until morale improves.”

The beatings of American workers (wage slashing, axed benefits, union busting, mass firings, offshored factories, and brutish abuse of worker rights) have been increasing in frequency, intensity, and scope — mostly ordered by CEOs in the posh, faraway headquarters of multi-tentacled global empires. These detached autocrats are wrecking the lives of hardworking people for no reasons but institutional greed, calculated self-interest … and because our corporate-coddling government lets them get away with it. Let’s meet one of the most powerful of these lords of rapacious global capitalism — Glencore.

Glencore strikes deal for Viterra

Glencore International PLC has made a friendly cash bid for Viterra Inc. (VT-T15.92-0.05-0.31%) for $16.25 per share.

The Swiss conglomerate is making the offer in conjunction with Canada’s Agrium (AGU-T88.202.462.87%) and Richardson International.

“Viterra employees created a world-class agribusiness, of which I am very proud. This has been recognized by Glencore and its partners, and this transaction creates value and opportunities for employees, our communities, farmers and customers in all the markets we serve,” Viterra chief executive officer Mayo Schmidt said in a statement.

Glencore, already in a merger deal with Xstrata, isn’t swallowing Viterra whole. It announced plans to sell the bulk of Viterra’s retail business to Agrium for $1.8-billion, and an almost one-quarter stake in its grain-handling assets to Richardson for some $800-million.

“The acquisition of Viterra reflects our strong belief in the importance and future potential of the Canadian and Australian grain markets,” said Chris Mahoney, Glencore’s director of agricultural products.

Glencore-Xstrata deal meets shareholder opposition

At least two top 10 shareholders in miner Xstrata PLC plan to vote against a takeover by commodities trader Glencore International, threatening the creation of a powerhouse spanning mining, agriculture and trading.

Standard Life Investments and Schroders said on Tuesday the deal, the mining sector’s biggest, to buy the remaining 66 per cent of Xstrata for $41-billion (U.S.), undervalued their shares.

The deal, designed to create a company to rival mining heavyweights such as BHP Billiton and Rio Tinto, needs to be approved by 75 percent of shareholders excluding Glencore, which is barred from voting.

Standard Life, the fourth largest investor in Xstrata, and Schroders together own 3.6 percent of Xstrata, but 5.6 percent of the shares needed for approval, according to Thomson Reuters data. Their stand may persuade others to follow suit.

“I’m in complete agreement with Standard Life and we intend to do exactly the same. This is a fabulous deal for Glencore, it’s probably a great deal for the Xstrata management, but it’s a poor deal for Xstrata’s majority shareholders,” Schroders’ Richard Buxton told Reuters.

Miners Xstrata, Glencore agree to $90B merger

Mining company Xstrata and commodities dealer Glencore agreed to a $90 billion US merger Tuesday that will create the world's fourth largest natural resources company.

The announcement of the terms of the deal comes just a few days after the revelation that the two companies were in discussions about a long-mooted tie-up — merger discussions, codenamed "Everest," have gone on for years.

The mining giant would operate around the world, including major nickel mining and refining businesses in Canada, where Xstrata subsidiary Xstrata Nickel owns the former Falconbridge nickel company in Sudbury, Ont.

The combined company will control a chain of businesses from mining to refining, storage and shipping of basic commodities like coal, copper and corn.

Under the terms of the deal, Xstrata shareholders would receive 2.8 Glencore shares for each of their shares. That represents a premium of 15.2 per cent based on Monday's closing prices. Glencore already had a 34 per cent stake in Xstrata.

The merger is projected to yield cost savings of $500 million in the first full year, primarily in marketing, while creating the world's fourth largest global diversified natural resource company, with operations in 33 countries. It will also give the combined company greater leverage to borrow money for its operations — a key advantage in the high-volume, low-margin commodities business.