Glencore-Xstrata merger completion pushed back
Completion date forwarded by six weeks owing to regulatory delays
By Gaurav Sharma | CFO UK | Published 12:22, 18 January 13
The completion date of the merger between commodities trader Glencore and mining firm Xstrata has been pushed back for a second time owing to regulatory delays.
A statement issued by Glencore on Friday said that its date for finalising the US$33 billion deal has been pushed back from 31 January to 15 March; a delay of six weeks. The company attributed this to lengthy antitrust regulatory processes in China and South Africa.
The earlier completion date of 31 January was in itself rescheduled from 31 December.
"The parties have agreed the new long stop date in order to give them the flexibility to complete the merger after the release of the preliminary results," Glencore said.
While the merger has received conditional approval from the European Commission, it is still facing hurdles in China and South Africa. The latter is home to major Xstrata operations while Chinese approval is needed as the country accounts for one-third of Xstrata's sales.
The merger was approved by shareholders on 20 November, 2012. Almost 80 percent of Xstrata investors voted in favour of the 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.
Share:Facebook Twitter Google Plus Stumble Upon Reddit Share This Email this article
Europe’s private placement market is still in infancymore ..
However, Osborne stresses job is "not yet done" in his half-yearly updatemore ..
EY ITEM Club predicts the OBR will revise up its UK growth forecasts for this year and 2014more ..
Like-for-like sales for the quarter, excluding VAT and petrol, fell by 1.5 percentmore ..
Tax avoidance and evasion are expected to be at the top of Osborne's agenda on 5 Decmore ..
No amount of positive economic data removes the risk of adverse currency movementsmore ..