Glencore International Plc, the world’s largest publicly traded commodities supplier, has agreed to buy Xstrata Plc in the biggest ever mining takeover deal.

Glencore, which currently holds 34 percent of Xstrata stakes, offered 2.8 new shares for each Xstrata share in an agreed all-share merger of equals, the companies said in a joint statement on Tuesday. The combination forms a $90 billion natural resources group, fully integrated from mining, processing, storage, freight and logistics to marketing and sales, the companies said.

We have a fantastic opportunity to create a new powerhouse in the global commodities industry, said Ivan Glasenberg, chief executive of Glencore.

Mick Davis, Xstrata chief executive, said in a statement that the merger offered a unique opportunity to create a new business model to respond to a changing environment. It is the logical next step for two complementary businesses, he added.

Sir John Bond, Xstrata's chairman, will hold the same position in the enlarged group. Davis will be the chief executive and Glasenberg deputy chief executive.

For 2011, Glencore earned $186.2 billion in sales and Xstrata had sales worth $33.9 billion. The new group will be looking to capitalize on the surge in demand for commodities from China and other emerging economies.