Glencore Xstrata merger deadline extended

Glencore International had extended the deadline to complete its $33 billion (R286bn) merger with Xstrata by a month following delays in getting regulatory approval, the commodities trader said yesterday. The deadline to complete the deal would be extended to January 31, Switzerland-based Glencore and Xstrata said in statements. The Competition Tribunal earlier postponed hearings on the transaction that were due to start on Monday. They would now take place from January 18 to January 28, the tribunal said yesterday. The postponement to the hearings had been requested by Glencore and Xstrata and related to the scope of Eskom’s intervention in the review, tribunal spokeswoman Nandi Mokoena said. Eskom has concerns over its ability to secure timely and competitively priced coal after the takeover. The power utility said the combined entity would account for about 15 percent of its coal supplies. Glencore won EU approval for its takeover of Xstrata last month after offering to end a zinc purchase agreement with Nyrstar and to sell its stake in the company. – Bloomberg


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