(Image Source: Sky News)

BY DAVID EARL

ANCHOR LAUREN ZIMA

The largest M&A deal of the year — announced Tuesday — would forge one of the world’s biggest commodities companies. Glencore and Xstrata announced plans for the largest-ever merger in the mining sector. Euronews has the details.

“The deal would create a powerhouse, spanning mining, agriculture and trading — with mining assets from New Caledonia to the Democratic Republic of the Congo.”

But some Xstrata shareholders think they’re getting shafted. A Wall Street Journal columnist explains what is branded as a merger of equals … really isn’t.

“In the end, Glencore shareholders, at this current exchange, will end up controlling the group, and the vast majority of Glencore shareholders are actually employees.”

An angry Xstrata shareholder tells Bloomberg...

“‘The proposed exchange ratio clearly undervalues Xstrata’s assets and future earnings contribution... It is our intention to vote against the deal unless the merger terms for Xstrata are materially improved.’”

Traders are calling the would-be combined company Glen-X. Glencore already owns a big chunk of Xstrata, and at least one fund manager — who actually owns Xstrata shares — tells CNBC the deal is about as good as the company can get at the moment.

“With a 34 percent stake owned by Glencore, we’re not really in a position to get a huge premium for control.”

But will the regulators brand the $90 billion deal a blow to competitiveness? An analyst tells BBC News the merger will most likely be smooth sailing.

“The EU, for instance, already regard Glencore and Xstrata as being one single entity...This is vertical integration.”

If the deal gets done, the newly merged company — based in Switzerland — would trade on the London Stock Exchange.