Mining giant Xstrata (LON:XTA) accepted a sweetened takeover offer Monday from Glencore International PLC (LONG:GLEN), the world's largest commodity trader, to create a nearly $70 billion company.

Zug, Switzerland-based Xstrata gave its approval for the takeover, first proposed publicly eight months ago, after Glencore increased its offer to $33 billion and a dispute over executive bonuses, which threatened to derail the combination, was decoupled from the takeover issue.

In Monday morning trading, shares of Xstrata shares rose more than 2 percent, while Glencore stock edged fractionally higher.