Glencore, Xstrata in $80 billion merger talks

Mining group Xstrata and commodities trader Glencore are in talks over an all-share merger that could create a combined group worth more than 50 billion pounds ($79 billion), shaking up the industry with its biggest deal to date.
Glencore, the world's largest diversified commodities trader, already owns 34 percent of Xstrata and a tie-up between the two Swiss-based companies - in a deal which would trump Rio Tinto's $38 billion acquisition of Alcan in 2007 - has long been expected, as Glencore aims to add more mines to its trading clout.
Investors, analysts and sources familiar with the matter say one key concern, after years of informal talks, will be the issue of a premium, with shareholders already signalling a deal will require a sweetener. But any agreement will hinge on the relationship between the ambitious South African bosses of both companies.