LONDON Feb 7 A combined Glencore
and Xstrata would be able to undertake larger deals, Xstrata's
chief executive Mick Davis said on Tuesday.
"There's no doubt that the combined entity has much greater
financial capacity and a cleaner shareholder structure to
facilitate us looking at deals which otherwise would have been
challenging for us to do and therefore (it) does allow you to do
larger transactions," Davis said in a conference call with
analysts and investors.
Xstrata agreed earlier on Tuesday to a takeover by
commodities trading giant Glencore, in a $90 billion recommended
all-share deal, the mining sector's biggest to date.
"The advantages of scale give you the opportunity of taking
perhaps more risk and therefore more opportunity in those
geographies where you might have said we will be there but we
will be there only within a particular size," he added.
He also said the oil and gas sector would be attractive to
the combined entity:
"That's an area which deserves and merits attention."