Xstrata-Glencore merger approved
Shareholders reject controversial pay deal for Xstrata executives
By CFOWorld.co.uk staff | CFO UK | Published 16:13, 20 November 12
Xstrata and Glencore shareholders have voted overwhelmingly to merge the mining and commodity companies, it was revealed on Tuesday.
Almost 80 percent of Xstrata investors voted in favour of the US$31 billion deal while 99.42 percent of Glencore shareholders supported it as well. However, Xstrata shareholders voted against a controversial pay plan that had been backed by the mining company’s directors and recommended by its chairman John Bond.
The merger would still need competition approval by the European Commission which is expected to rule on the deal on Thursday. Chinese approval would also be needed as the country accounts for one-third of Xstrata's sales.
Talks were first announced in February, when Glencore offered 2.8 shares for each Xstrata share. Bowing to shareholder pressure, Glencore increased the offer to 3.05 shares in September.
Under the terms of the deal, Xstrata boss Mick Davis would head the combined group for six months before making way for Glencore's Ivan Glasenberg to take over the reins.
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