Top executives at Glencore, one of the world's largest mining and commodities trading companies, and miner Xstrata have agreed on a $90 billion tie-up, the industry’s ever largest merger, Xstrata said in a statement on Tuesday.

“The Glencore Directors and the Independent Xstrata Directors have reached agreement on the terms of a recommended all-share merger of equals,” the statement said.

Xstrata, in which Glencore already has a 34 percent stake, said that the deal would create “a major natural resources group with a combined equity market value of $90 billion and a unique business model, fully integrated along the commodities value chain, from mining and processing, storage, freight and logistics, to marketing and sales.”

“A merger between Glencore and Xstrata offers a unique opportunity to create a new business model in our industry to respond to a changing environment," Xstrata Chief Executive Officer Mick Davis said. "It is the logical next step for two complementary businesses, each with an outstanding track record of shareholder value creation, entrepreneurial management and a proven ability to spot valuable opportunities and capitalize on them,” he added.