Bloomberg News

Glencore Extends Xstrata Takeover Deadline by a Month to Jan. 31

December 10, 2012

Glencore International Plc (GLEN), the commodities trader that’s agreed to buy Xstrata Plc (XTA), extended the deadline to complete the $33 billion deal by a month following delays in getting regulator approval in South Africa.

South Africa’s Competition Tribunal earlier postponed hearings on the transaction that were due to start yesterday. They will now take place on Jan. 18, Jan. 21-23 and Jan. 28, the Pretoria-based antitrust body said in an e-mailed statement. The deadline to complete the deal will be extended to Jan. 31, Baar, Switzerland-based Glencore and Xstrata said in statements.

South Africa’s power utility Eskom Holdings SOC Ltd. has concerns over its ability to secure timely and competitively- priced coal after the takeover. The combined entity would account for about 15 percent of Eskom’s coal supplies, the utility that supplies about 95 percent of the country’s electricity. said Dec. 7.

The postponement to the hearings was requested by Glencore and Xstrata and relates to the scope of Eskom’s intervention in the review, Nandi Mokoena, a spokeswoman for the tribunal, said by phone.

Glencore on Nov. 22 won European Union approval for its takeover of Zug, Switzerland-based Xstrata after offering to end a zinc-purchase agreement with Nyrstar (NYR) NV and to sell its stake in the company. Chinese commerce ministry approval is also outstanding for the deal, which creates the world’s fourth- biggest mining company.

To contact the reporters on this story: Carli Cooke in Johannesburg at clourens@bloomberg.net; Jesse Riseborough in London at jriseborough@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


Best LBO Ever
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus