• Growing people

    What is the most powerful way to develop the capabilities of people at work? Ian Mann answers.

  • Wealth and poverty

    True riches would be to create a safe and satisfied community for all South Africans.

  • SABC shenanigans

    SA has already embarked on a slippery slope to autocracy, warns Terry Bell in Inside Labour.

All data is delayed
Loading...
See More

Green light for Xstrata, Glencore merger

Jan 22 2013 10:20
Reuters

Johannesburg - The Competition Tribunal on Tuesday gave the green light to the proposed takeover of global miner Xstrata by commodities trader Glencore.

However, the tribunal attached some conditions to the $33bn deal to limit the merger's impact on job losses in the crucial mining sector.

One of the conditions stipulates that job losses among skilled workers be limited to a maximum of 80 workers, the tribunal said in a statement.

Job losses among unskilled or semi-skilled workers shall be limited to 100 and may only take place more than two years after the merger has been fully approved by all affected jurisdictions.

The job loss conditions do not include voluntary leave or early retirement packages and would also not apply to workers who refuse to be redeployed.

The approval of the merger in South Africa went through smoothly after power utility Eskom withdrew its objections last week following an agreement with Glencore that would limit the impact of the merger on its coal supplies.

The utility relies on coal-fired plants to generate 85% of the electricity that powers South Africa and was keen to ensure the merger did not hamper its ability to obtain timely, sufficient and competitively priced coal.  

Glencore is still waiting for the go-ahead for the deal from antitrust authorities in China, having already received a conditional approval from European regulators.

Last Friday Glencore pushed back the date for completion of the long-awaited tie-up to March 15, citing lengthy regulatory processes in South Africa and China.  

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

glencore  |  eskom  |  xstrata

 
 
 

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
0 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

THE SAVINGS ISSUE

Saving can make a lot of things possible, but we all know how hard it is to save. This special Savings Issue will help you get focused.
 

Money Clinic

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

Voting Booth

Have you experienced FNB’s outage problem?

Previous results · Suggest a vote

Loading...