Glencore-Xstrata Merger Delayed Again on China Approval
By Jerin Mathew | April 2, 2013 7:57 PM EST
The closing of Glencore's mega merger with Xstrata has been delayed again in the absence of approval for the deal by China, which is the Swiss commodities trader's biggest buyer of materials.
Glencore said in a stock exchange filing that the longstop date for the merger between the companies has been extended to 2 May, subject to the receipt of the final decision from Chinese authorities, completion of the Xstrata court process and Glencore giving effect to the commitments required by the European Commission.
The closing date of the merger has been pushed back several times. On 5 March, the companies have extended the closing date from 15 March to16 April due to the review of the deal by Chinese authorities.
Glencore said it had again postponed the deadline date as it did not expect to receive the final approval from Chinese authorities in time for the previous deadline of 16 April. That was despite the constructive discussions held with China's Ministry of Commerce or Mofcom.
"Glencore believes that it has had constructive discussions with the Ministry of Commerce of the People's Republic of China (Mofcom) and that these discussions are now in their final stages," the company said in a statement.
"However, Glencore does not expect to receive the final decision from Mofcom in time for the merger to be completed by 16 April 2013".
The £50bn ($75bn, €58bn) merger, creating a natural resources mammoth with 130,000 employees in more than 40 countries, was earlier approved by the European and South African authorities. The mega merger would bring together Xstrata's coal, copper, nickel and zinc mines with Glencore's expertise and market position in trading hundreds of commodities.
Both Glencore and Xstrata are already selling minerals in China and the merged company expects to raise its market share in the country. Nevertheless, they do not have operating assets like mines and smelters in the region.
To contact the editor, e-mail:
Join the Conversation
- Target Early Black Friday 2014 Sale Ad Released For Nov. 26, 2014 Includes Deals On Toys, HDTVs And Video Games Such As ‘FIFA 15’ And ‘NHL 15’ For Xbox 360 [WATCH VIDEO]
- Kohl's Black Friday 2014 Online Deals Available Now Until Nov. 28, 2014 Including Free Shipping For Orders Worth $50 And More [WATCH VIDEO]
- BHP Billiton To Turn Olympic Dam Mine To World’s 2nd Largest Copper Mine
- A Bearded Man Is Arresting UberX Drivers Across Sydney
- Russia Is Ready for Shooting War, Will Likely Win Looming Nuclear Showdown with U.S. – Report
- Kobani ISIS Fighter Sends Out Desperate Message For Prayers And Support: Euphoria Turns Into Desperation As Kurds Advance
- Chris Algieri’s Battered Face Trends On Social Media
- Microsoft Band Runs Out Of Stock, But Offers $10 Gift Voucher To Wait-Listed Customers
- Black Friday Sale 2014 Deals From Amazon On Smartphones, TVs, Headsets And More
- Andrew Robb Asks Obama Not to ‘Lecture’ Australia on Climate Change