LONDON--Commodities giant Glencore International PLC (GLEN.LN) said Tuesday that growing euro-zone sovereign debt concerns and the resulting knock to financial market sentiment and commodities prices has tempered the performance of its industrial assets, but that its market operations are still performing well and physical demand remains generally healthy.
Glencore released qualitative statements on its website Tuesday afternoon about its trading and prospects, contained in a second supplementary prospectus statement about its proposed multibillion-dollar merger with miner Xstrata PLC (XTA.LN). The merger would create the world's fourth-largest mining company with a market capitalization of $62 billion, but the two companies are under mounting pressure from some of Xstrata's largest shareholders to sweeten the terms of the deal.
Glencore said it's encouraged by progress in developing growth projects for its industrial assets.
Despite the economic uncertainty, the company said it sees commodity inventories, both on exchanges and within supply chains, as generally low and it continues to see long-term fundamentals for its major commodities as strong.
Earlier Tuesday, Anglo-Swiss miner Xstrata said it remains positive about the medium-term outlook for commodities, but it may slow down some investments as the industry faces a dip in demand and prices in the near term.
Glencore expects to report its half-year results on Aug. 21.
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(END) Dow Jones Newswires
August 07, 2012 13:05 ET (17:05 GMT)
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