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
Volkswagen Australia Wednesday confirmed that more than 91 thousand vehicles sold in Australia were fitted with emission cheating software. Volkswagen brand alone comes to 77,000 cars and 14,000 cars are Audis. In what could be a delectable offering, something is cooking in the brewing industry. Belgian brewer Anheuser-Busch Inbev, which in itself is an outcome of many mergers in the past, has made advances to U.K.'s SABMiller. If AB InBev succeeds in its pursuit, the heady combination of the two could create one of the world's largest brewers. Large U.S. companies are holding trillions of dollars overseas in an effort to avoid U.S. taxes, with big-name firms like Apple (AAPL), Pfizer (PFE) and PepsiCo (PEP) named as notable examples. This is the claim made by a pair of non-profit groups, who released a study based on the firms' financial statements.
comments powered by Disqus
Follow RTT