Glencore Xstrata, the commodity trading and mining company run by the billionaire Ivan Glasenberg, has promised shareholders it will make at least $2bn (£1.3bn) of savings from the $44bn takeover of Xstrata.
Glasenberg, who owns 8.3% of the company's shares, worth £3.5bn, said closing 33 Xstrata offices and firing more than 1,800 employees had saved $1.4bn. The total savings, which include marketing and financial benefits, are four times the $500m it had initially estimated from the biggest ever takeover in the mining industry.
In his first detailed presentation since sealing the takeover in May, Glasenberg promised investors more savings in the future "as we delve deeper into the assets … I am sure there is more to go".
Glasenberg has been under pressure to demonstrate benefits of the takeover after a drop in commodity prices forced the company to write down the value of Xstrata assets by $7.7bn last month.
Glencore's shares rose 2.3% to 329p on Tuesday, the highest since May.
Glasenberg collected a $173m dividend from his stake in the company last year. Other senior executives own a further 16% of the company.
