Glencore boosted by prices and demand

Commodities giant Glencore International has seen its full-year profit rise seven per cent to reach $4.06 billion (SFr3.71 billion), with revenues increasing 28 per cent to $186 billion.

The Swiss-based company benefited in 2011 from rising prices for key raw materials and steadily growing demand in developing countries.

Glencore reported a profit of $3.8 billion for the full year 2010. The company said in a statement on Monday that income attributable to shareholders reached $4.05 billion last year.

Glencore, which received a $10 billion cash injection with its partial IPO last May, is seeking to merge with Anglo-Swiss mining group Xstrata later this year.

It gave no indication on Monday whether it would increase its $37 billion offer for Xstrata. Glencore is offering 2.8 shares for every Xstrata share it does not own, around two thirds of the company.

“This is a merger of equals. Xstrata have got most of the senior jobs. Most previous mergers of equals were done at a ratio of equals – this deal… has been done at a premium,” Glencore Chief Executive Ivan Glasenberg told Reuters.

“We believe it is a fair deal, fair to all shareholders.”