BRUSSELS Nov 22 Commodity trader Glencore
clinched EU regulatory approval for its $31 billion bid
for miner Xstrata on Thursday after agreeing to cut its
European Union zinc market share to below 40 percent.
The world's largest diversified commodities trader must
scrap an exclusive zinc sales deal and sell its 7.8 percent
stake in world No. 1 zinc producer Nyrstar, the
European Commission said in a statement.
"The proposed remedy ensures that competition in the
European zinc metal market is preserved, so that European
customers such as steel galvanisers and carmakers can continue
to produce valuable consumer goods at low prices and good
quality," EU Competition Commissioner Joaquin Almunia said.
The combined entity, including the Nyrstar agreement, would
have had a 50-percent share of the zinc market in Europe.
Antitrust authorities typically worry when market clout exceeds
Ending the Nyrstar sales deal would free up 350,000 tonnes,
16 percent of Europe's zinc market, and cut the combined group's
50-percent share to below 40 percent.
The Commission said Glencore also pledged not to buy, either
directly or indirectly, zinc from Nyrstar for 10 years and will
not take any action to restrict the zinc producer's ability to
compete with it in Europe during that period.