Glencore to sell Las Bambas for Xstrata approval

LONDON Tue Apr 16, 2013 9:23am EDT

Swiss commodities trader Glencore's logo is seen in front of its headquarters in Baar, near Zurich, February 6, 2012. REUTERS/Romina Amato

Swiss commodities trader Glencore's logo is seen in front of its headquarters in Baar, near Zurich, February 6, 2012.

Credit: Reuters/Romina Amato

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LONDON (Reuters) - Commodities trader Glencore said it would sell its interest in Xstrata's Las Bambas copper project in Peru after it buys the miner, clearing a final hurdle set by Chinese regulators for the multi-billion dollar deal.

The company also announced that Xstrata Chief Executive Mick Davies would step down from Xstrata on completion of the merger.

Glencore said on Tuesday it would sell its interest in the project to a purchaser approved by China's Ministry of Commerce (MOFCOM) by September 15 2014.

China conditionally approved the $35 billion acquisition earlier on Tuesday, with the proviso that it begins selling off assets in its Las Bambas copper mine within three months, and that Glencore should also provide certain amounts of copper, zinc and lead concentrates to Chinese clients.

(Reporting by Paul Sandle)

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