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Xstrata chief executive Mick Davis told analysts last month it was “unsustainable in the longer term” for both companies to be independently listed, the Financial Times reported.
According to the report, industry analysts predict Glencore may seek to merge which Xstrata, in which it owns a 34% stake, following the appointment this week of Vodafone boss Sir John Bond as Xstrata chairman and the retirement of Willy Strothotte, who is also Glencore chairman, from the position.
Strothotte’s resignation removes a potential conflict of interest between the two companies, allowing a potential merger between the two companies to go ahead.
Bond will join the Xstrata board in May.
Meanwhile, Glencore is preparing for an $US60 billion ($A59 billion) initial public offering in the second quarter of this year.
