Xstrata-Glencore merger backed by European Commission

Xstrata logo Xstrata is on course to become part of Glencore

Related Stories

The European Commission has given its backing to commodities giant Glencore's $31bn (£19.5bn) bid to take over mining firm Xstrata.

But as a condition, Glencore must scrap an exclusive deal with Nyrstar, the world's largest zinc metal producer, and sell its 7.8% stake in the firm.

Both Xstrata and Glencore shareholders have already voted overwhelmingly to merge the two companies.

The deal still requires regulatory approval in China and South Africa.

The Commission was concerned that the merged firm would have the ability and incentive to raise prices for zinc, an important raw material for many EU industries. The conditions address those fears.

The Commission vice-president in charge of competition policy, Joaquin Almunia, said: "The merger will bring together two major global players in key commodities.

"The proposed remedy ensures that competition in the European zinc metal market is preserved, so that European customers such as steel galvanisers and car makers can continue to produce valuable consumer goods at low prices and good quality."

The merger plan was first announced in February, when Glencore offered 2.8 shares for each Xstrata share. After months of negotiations, the offer was increased to 3.05 shares in September.

Glencore's chief executive, Ivan Glasenberg, will head the combined group.

Glencore Xstrata




Chief executive

Ivan Glasenberg

Mick Davis

What it does

Commodities trading


Revenue (2011)



Profits (2011)









More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories


Features & Analysis

  • Dr Mahinder Watsa Dr Sex

    The wisecracking 90-year-old whose advice column is a cult hit

  • Payton McKinnonLeft behind

    Why do so many children die in hot cars?

  • USA fanSoccer punch

    Has the US finally fallen in love with the beautiful game? BBC Sport

  • Cooling towers at the Temelin nuclear power station, Czech Republic, 2011Nuclear links

    The EU's dependence on Russian-designed power plants

Elsewhere on the BBC

  • Kyoto.Falling for Kyoto

    Acclaimed writer Pico Iyer describes an enchanting first stroll through the city


  • (File photo) Usain BoltClick Watch

    Challenging the world's fastest man to a virtual race over 40m – can you keep up?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.