Qatar Holdings approves Glencore takeover of Xstrata

18 November 2012 (Last Updated November 18th, 2012 18:30)

Glencore's long drawn-out takeover of Xstrata could finally reach the finish line this week after stakeholder Qatar Holding announced its approval of the deal.

Together, Glencore and Xstrata would Together, Glencore and Xstrata would create a $86bn mining powerhouse.

Glencore's long drawn-out takeover of Xstrata could finally reach the finish line this week after stakeholder Qatar Holding announced its approval of the deal.

The Board of QH said that it will vote its shares in Xstrata at the Further Xstrata General Meeting and the New Court Meeting on Tuesday.

''QH continues to see merit in a combination of the two companies and is satisfied with the terms of the proposed merger, having secured the improved exchange ratio of 3.05 new Glencore shares for every one existing Xstrata share,'' the company said in a statement.

The transaction is also awaiting anti-trust approval from the EU, having prepared concessions to accelerate the merger.

A decision from the EU anti-trust authority is due on 22 November.

Delay in approvals following the shareholder vote now seems unlikely, particularly after Glencore has agreed to divest its holding in zinc producer Nyrstar and a zinc plant in Nordenham, Germany, reported Reuters.

Approval from the Chinese regulatory bodies may yet be delayed as there is no fixed deadline.

Glencore needs a nod from 75% of Xstrata's shareholders for the merger to go ahead, while only 50% are required to vote against it for the proposal to collapse.


Image: Together, Glencore and Xstrata would create a huge, $86bn mining powerhouse.