Deals
Glencore-Xstrata Merger Faces Zinc Hurdle, Jefferies Group Says
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Glencore International Plc’s 21.2 billion-pound ($34 billion) bid for Xstrata Plc may face regulatory hurdles on concern a merger would give the companies unfair advantages in the zinc market, Jefferies Group Inc. said.
Xstrata could be forced to sell its San Juan de Nieva zinc smelter in Spain to win European Commission approval for a tie-up, Christopher LaFemina, an analyst at Jefferies in New York, said today in a note. Without “structural remedies,” the combination may lead to “significant concerns regarding anti-competitive conditions,” he said.