This article came from: http://www.winnipegfreepress.com/
The Canadian Press
Merger talks that could result the creation of a new European giant in the global mining industry, are being watched carefully in Canada.
A union leader representing 850 mine and smelter workers in Sudbury, Ont., said Thursday he’s doesn’t expect much change if their employer — Xstrata PLC — merges with commodities trader Glencore International PLC.
“The rock ain’t moving,” Richard Paquin, president of the Canadian Auto Workers Local 598, said Thursday.
“For us it is not a new venture,” he said. “It is a matter of co-operating with the new employer if it every happens and trying to get the best we can for our workers.”
He said the Sudbury operation has already been through the uncertainty of Xstrata’s takeover of Canadian nickel and copper producer Falconbridge in 2006 after a takeover battle that lasted nearly two years.
Xstrata, which has more than 70,000 employees in more than 20 countries, confirmed Thursday that it is in merger talks with Glencore, the company’s largest shareholder.
Xstrata Nickel, a Toronto-based subsidiary with about 1,000 employees in Sudbury and 850 at its mine and concentrator in northern Quebec, declined to comment on the Glencore talks on Thursday.
A deal would combine Xstrata’s mines around the world and Glencore’s marketing, production and logistics business, which deals mainly with mined commodities.
Morningstar analyst Daniel Rohr said Xstrata boss Mick Davis, who spearheaded the Falconbridge takeover, would likely end up running the combined company so there’s little reason to think there would be much change at Xtrata Nickel.
Rohr added that Xstrata is already flush with cash, so any projects in Canada that the company wants to pursue are unlikely to gain any additional benefit from a deal with Glencore.
“I wouldn’t expect the combined entity to be able to grow the Canadian operations more than Xstrata on its own,” Rohr said.
“There’s no major capital constraint on them right now that’s preventing organic growth.”
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