• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

See More

Glencore-Xstrata merger passes last hurdle

Apr 16 2013 14:19 Reuters

Related Articles

Glencore profit down as impairments bite

Glencore-Xstrata merger awaits China nod

Green light for Xstrata, Glencore merger

Glencore-Xstrata merger decision soon

Xstrata, Glencore hearing postponed

Huge backing for $31bn Xstrata takeover


Beijing/London - Glencore and Xstrata cleared the final hurdle in their long-running merger plan on Tuesday, when China's Ministry of Commerce conditionally backed the $35bn deal.

The ministry said it would approve the largest merger in mining history as long as the new company sold off assets in its Las Bambas copper mine in Peru within three months - a condition which Glencore accepted.

Glencore and Xstrata had been waiting for months for China, the biggest buyer of the materials it trades and mines, to give the regulatory the go-ahead. Glencore had said it would complete the takeover by May 2 if it got Chinese approval this week.

In a statement on its website, the ministry also said Glencore should provide certain amounts of copper, zinc and lead concentrates to Chinese clients every year to 2020.

Glencore said on Tuesday it would begin the sale process for Las Bambas, an Xstrata greenfield mine which is set to start operating in 2015, producing more than 400,000 tonnes of copper a year for at least the first five years.

Glencore had already agreed to scrap an exclusive zinc sales agreement with producer Nyrstar to win approval for the Xstrata deal in Europe. On Tuesday, Nyrstar said Glencore would pay it a termination fee of €44.9m.

Separately, Xstrata said several top executives would leave the company before the takeover, including the head of copper Charlie Sartain and the head of nickel Ian Pearce.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

glencore  |  xstrata  |  mining


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

10 most expensive cars In the world

This is car porn at its best!


Luxury living

Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote