Xstrata Plc (XTA.L) and Glencore International Plc (GLEN.L,GLNCY.PK,GLCNF.PK) on Friday said they are currently engaged in constructive discussions with the regulatory authorities, including the European Commission, which require anti-trust filings to be submitted for their proposed merger.
It was on February 7 that the Swiss mining company unveiled an all-share merger of equals with its 34-percent stakeholder Glencore. The merger, dubbed the 'logical next step for two complementary businesses' would create a $90 billion natural resources group to be called Glencore Xstrata International Plc.
Following the deal, Xstrata shareholders other than Glencore would have a 45 percent stake in the combined entity.
The companies today said they continue to expect to receive all relevant approvals to enable completion of the merger in the third quarter, as previously announced.
Documentation relating to the merger is now anticipated to be distributed to each company's shareholders by the end of May instead of in April as previously said on February 7.
Shareholder meetings of both companies to approve the merger are expected to be convened in early July.
The Panel on Takeovers and Mergers has given its consent to these arrangements, the company noted.
XTA.L closed on Thursday at 1,105.50 pence, up 26.50 pence from the previous close.
Glencore shares settled higher by 2.51 percent on the LSE at 404.90 pence.
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by RTT Staff Writer
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