Glencore and Xstrata set to create 'No 1 mining predator' "This could see Mick take control of the company for two years - oversee the integration - and leave, allowing Ivan to inherit the earth," he said. Glencore already owns a 34.4pc stake in Xstrata and is responsible for the marketing and trading of a third of all Xstrata's mining assets. Much of Glencore's $10bn float last year was prompted by Xstrata's refusal to commit to a merger without a share price valuation to determine the balance of power in a deal. At Wednesday's closing price, before the merger talks were announced, Glencore's £29.9bn market valuation was very close to Xstrata's £21.8bn. The combined group was worth £51.7bn, or around $81.5bn, after stripping out Glencore's 34pc stake in Xstrata. Analysts were forecasting Glencore would pay a "skinny" premium under the deal, with a share ratio of 2.7 Glencore shares for every Xstrata share. The combined company would be 57pc owned by Glencore shareholders, many of whom are its millionaire executives. The asset mix would be very different however, with 64pc of assets coming from Xstrata. "That is not relevant," said one insider, who denied that Glencore's reliance on its commodities trading arm was viewed as risky and less valuable than mining assets. Trading, in which Glencore is a global powerhouse, would represent just 24pc of the joint company. The rest would be copper (30pc), coal (28pc), zinc (14pc) and oil (2pc). If the merger succeeds, the fee pot for bankers is expected to total $140m, according to estimates from Thomson Reuters and Freeman Consulting. But the deal is not yet sealed. "The most difficult decisions are yet to be made," said another source, referring to the management structure. Competition regulators could express concern about consolidation in a sector already dominated by giants, particularly given the two companies" leading positions within the seaborne coal market. Tom Gidley-Kitchin, an analyst at broker Charles Stanley, said it looked difficult to justify stopping the deal as Glencore already owns a large part of Xstrata, but thought disposals of coal assets might be required. The initial stake was purchased in 1990 and was increased in 2002 when Xstrata floated, as it paid in cash and shares to acquire Glencore's coal assets.