Glencore, Xstrata agree to $90 billion merger LONDON (AP) - Mining company Xstrata and commodities dealer Glencore agreed to a $90 billion merger Tuesday that will create the world's fourth largest natural resources company. The announcement of the terms of the deal comes just a few days after the revelation that the two companies were in discussions about a long-mooted tie-up. The combined company will control a chain of businesses from mining to refining, storage and shipping of basic commodities like coal, copper and corn. The deal concludes years of negotiations between Xstrata and Glencore, who codenamed the merger project 'Everest.' Under the terms of the deal, Xstrata shareholders would receive 2.8 Glencore shares for each of their shares. That represents a premium of 15.2 percent based on Monday's closing prices. Glencore already had a 34 percent stake in Xstrata. The merger is projected to yield cost savings of $500 million in the first full year, primarily in marketing, while creating the world's fourth largest global diversified natural resource company, with operations in 33 countries. It would be the world's third-largest copper producer, fourth-largest nickel producers and the global leader in thermal coal, ferrochrome and integrated zinc production. Davis told a conference call that he expects the merger to complete in the third quarter of this year, assuming regulators give the deal the all-clear. Xstrata shares were down 1.7 percent at 1,240 pence in early trading in London; Glencore shares were up 1.1 percent at 466 pence. The merger agreement was announced as Xstrata reported a 22 percent gain in full-year profit to $5.7 billion, compared to $4.7 billion a year earlier. Revenue was up 11 percent to $33.9 billion.