The merger plan of Glencore and Xstrata cleared its final hurdle when the Ministry of Commerce of China backed the deal's completion. The ministry said it would be granting approval for the US$35 billion merger on the condition that the new company would sell off its Las Bambas, Peru copper mine assets within three months.
This condition was readily approved by Glencore. With the acceptance the waiting time for the world's largest buyer of materials in mining materials has passed. According to Glencore, the takeover would be completed by May 2 of this year.
According to the Ministry's website, Glencore is provided quotas as to copper, zinc and lead concentrates to Chinese clients every year until 2020.
Aside from the sale of the Las Bambas mines, Glencore had also agreed to scrap an exclusive zinc sales agreement with Nyrstar in order to win the Xstrata deal in Europe. As a result of such termination, Glencore needs to pay a fee of Eur44.9 million.
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