$7.7bn Of Assets Written Down By Glencore Xstrata

Glencore Xstrata (GLEN.L) has confirmed it has seen a drop in its revenues and will be writing down $7.7 billion (£4.9 billion) of its assets as a result.

The firm stated that tougher conditions in the mining sector is the reason for this, just a few months after the merger of the two companies went through.

Revenues in the first half of 2013 were revealed by the organisation to have dropped by two per cent to $121.4 billion, reports BBC News.

"Xstrata had a long history of acquisitions," said Andrew Latto, senior analyst at stock market research company Fat Prophets, who also noted Glencore is now "trying to focus on where they see the value and write down assets that they don't see having value going forward".

The merger of the two firms was a lengthy process and it was only confirmed it had gone through in May this year.

Despite the falling revenues announced by Glencore Xstrata, its share price is up by 1.45 per cent this morning (August 21st) in the early moments of trading.

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