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Glencore leaps final hurdle over Xstrata

Tuesday, April 16, 2013 - 01:05

April 16 - China's antitrust authorities have removed the last obstacle to Glencore's $30 billion takeover of miner Xstrata - one of the biggest deals of the decade could now be completed next month. Sonia Legg reports

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All clear for take off - Glencore's $30 billion takeover of miner Xstrata can finally go ahead. China's anti-trust authorities removed the last obstacle after the commodities trader offered to sell a $5.2bln mining project to ease its grip on copper. Once combined the two giants would have accounted for roughly 7 percent of global copper supply. Glencore has also agreed to a series of commitments over the next 8 years covering the supply of copper, zinc and lead to China. The world's second largest economy relies heavily on metals and was never expected to let the merger go head without conditions. But 15 months after news of the tie-up first emerged - it's thought the acquisition can now be completed - possibly by next month. Challenges do remain - a string of departures from Xstrata's management team were also announced on Tuesday. And the miner's chief executive Mick Davis won't now stay on to run the combined company for six months. He's going straight away and somewhat controversially taking a 14 million pound pay off with him.

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Glencore leaps final hurdle over Xstrata

Tuesday, April 16, 2013 - 01:05