The Straits Times
Published on Nov 21, 2012

EU regulators clear way for $39b Glencore-Xstrata merger


LONDON (REUTERS) - The European Union's anti-trust regulators have cleared commodity trader Glencore's US$32 billion (S$39 billion) takeover of Xstrata, virtually sealing the deal to create a mining and trading powerhouse without requiring asset sales.

Sources familiar with the matter said Glencore had satisfied the concerns of the European Commission - focused on the supply of zinc metal, particularly in northern Europe - by agreeing to end a zinc sales deal with Belgian producer Nyrstar.

Glencore, however, avoided more substantial concessions, which could have included the sale of assets like Xstrata's Nordenham zinc plant in Germany or, as some analysts had feared, the miner's San Juan de Nieva refinery, the largest of its kind in the world.

Analysts fretted such forced sales could have "leaked" value as Glencore scrambled to secure the merger.