Loading...
See More

Xstrata, Glencore hearing postponed

Dec 10 2012 17:54 Reuters

Related Articles

Huge backing for $31bn Xstrata takeover

Glencore lays out final bid for Xstrata

Glencore raises offer for Xstrata

Glencore delays vote on Xstrata bid

Glencore offers no Xstrata clues

Xstrata sets date for Glencore vote

 
Pretoria - A hearing by South Africa's competition tribunal on commodities trader Glencore's $33bn takeover of miner Xstrata has been postponed until next month, the court said on Monday.

Glencore was expected to defend its case this week after South African power utility Eskom raised concerns the deal could affect its coal supplies, but the hearing was postponed until Jan. 18 after the parties asked for more time to prepare.

"We agreed to postpone the hearing because there would be insufficient time now to properly examine the matter," said Rafik Bhana, a lawyer representing Eskom.

State-owned Eskom has said it is not calling for the deal to be abandoned but is hoping the country's competition authority will impose conditions on the tie-up to ensure coal supplies to its power plants are not at risk.

The utility relies on coal-fired power plants to generate 85% of the electricity that powers Africa's biggest economy and is keen to ensure the merger does not impede its ability to obtain timely, sufficient and competitively priced coal.

Xstrata is one of South Africa's biggest coal producers and a key supplier of the fuel to Eskom. The utility said the merged entity would be supplying 15% of Eskom's coal and would be also among the largest traders in the coal market.

Eskom hopes to ensure that the merged entity does not dominate the market by setting prices that are unaffordable to the utility or opt for exports hoping for higher returns.

Insufficient and poor qualities of coal have been a concern to Eskom in the past and affected its ability to meet fast rising demand for electricity in the major producer of platinum, gold and other minerals.

Glencore's long-awaited takeover of Xstrata only has two hurdles left to clear: final approval from competition authorities in South Africa and China.
competition tribunal  |  glencore  |  eskom  |  xstrata
NEXT ON FIN24X

 

Lastest Articles

Here is how to check your credit score and manage it Read More...
Top tips to save money over the festive period Read More...
These are the top 5 most fuel efficient cars in SA Read More...
What to consider when switching medical aid schemes Read More...
 
 

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
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

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