Glencore takeover gets greenlight from Chinese regulators
Glencore’s multi-billion takeover of Xstrata received the go ahead from Chinese regulators in return for shedding a copper mine.
The Ministry of Commerce of the People’s Republic of China gave approval subject to conditions. Xstrata must give up the $5.2 billion Las Bambas copper mine in Peru. Sale completion must occur by June 2015. The company also agreed to eight years of supply commitments to Chinese customers covering copper, zinc and lead.
Glencore CEO Ivan Glasenberg will become head of the combined entity. Xstrata’s CEO, Mick Davis, will step down in May but will act as a consultant.
A number of other Xstrata executives will be leaving, such as Trevor Reid who was Xstrata’s chief financial officer. Other people leaving are division heads of Xstrata’s copper, nickel, and alloys divisions.