Glencore International Plc (GLEN), the largest publicly traded commodities supplier, said it completed its $29 billion takeover of Xstrata Plc (XTA) and that the combined group will begin trading tomorrow in London.
Glencore Xstrata Plc will start trade at 8 a.m. in the city and in Hong Kong on May 6, the Baar, Switzerland-based company said today in a statement. Outgoing Xstrata Chairman John Bond remains on the board, according to the statement. Bond said in November that he planned to stay on after the takeover to help appoint a new chairman before resigning.
The deal creates the world’s fourth-biggest mining company by adding Xstrata’s coal, copper, nickel and zinc mines to Glencore Chief Executive Officer Ivan Glasenberg’s commodities trading empire. Glencore received regulatory approval from China last month, the final hurdle in a 15-month takeover battle that will see a number of senior Xstrata executives depart.
Mick Davis, the 55-year-old who headed Xstrata from its inception in 2001, will act as a consultant until June 30. Other senior management including Charlie Sartain, head of copper, nickel chief Ian Pearce and Loutjie Smit, interim CEO of Xstrata alloys, are scheduled to leave today.
Strategy and corporate affairs head Thras Moraitis and chief legal counsel Benny Levene will also depart after acting as consultants for six months, Xstrata said last month.
Glencore rose 0.1 percent to 314.75 pence by 10:48 a.m. in London. The company was advised by Citigroup Inc. and Morgan Stanley. Xstrata hired Goldman Sachs Group Inc., JPMorgan Chase & Co., Deutsche Bank AG and Nomura Bank International Plc.
To contact the editor responsible for this story: John Viljoen at firstname.lastname@example.org