logo
Share SHARE
FONT-SIZE Plus   Neg

Xstrata, Glencore In Constructive Talks With Regulators On Merger - Update

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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
French car maker Renault SA reported Friday higher profit in its fiscal 2015, with strong growth in automotive profit and revenues. The company announced higher dividend. Looking ahead, for fiscal 2016, Renault expects to increase group revenues at constant exchange rates and improve group operating margin. Shares of Rolls-Royce Holdings Plc were gaining around 13 percent in the morning trading in London after the engine maker reported more-than doubled profit in its fiscal year 2015, with lower one-time items. Underlying earnings were hurt by weakness in Marine markets. Further, the company halved its dividends, and still expects lower revenues next year. German steel giant ThyssenKrupp AG reported a loss in its first quarter, compared to last year's profit as sales and orders were hurt by sharp deterioration in materials businesses. The company said its overall performance in the first quarter was within its full-year forecast corridor. Looking ahead, the company continues to expect higher net income and flat sales for fiscal 2016.
comments powered by Disqus
Follow RTT