Glencore-Xstrata Deal Set for China Approval, Officials SayBloomberg News
Glencore International Plc is expected to get approval from China’s commerce ministry for its takeover of Xstrata Plc, two government officials with knowledge of the matter said, meeting the last regulatory requirement for a deal that creates the fourth-largest mining company.
Glencore, the Baar, Switzerland-based commodities trader, and coal producer Xstrata last week extended the deadline to mid-March, to allow for the completion of regulatory reviews in South Africa and China. South Africa’s antitrust regulator announced that it had cleared the $36 billion deal yesterday, following a Nov. 22 approval by the European Union.
China has no reason to reject the transaction, after regulators in other countries approved it and given that the deal doesn’t involve any major business interest for China, the two Beijing-based officials said, asking to not be identified because they aren’t authorized to speak to the media.
China’s review process for the takeover is within the normal time frame of seven to nine months from the announcement of a merger or acquisition to government clearance, said one of the officials. A spokesman for Glencore declined to comment.
Glencore announced the acquisition of Zug, Switzerland-based Xstrata in February 2012, raising its all-stock bid in September before winning shareholder approval. The companies extended their earlier deadline of Jan. 31 to complete the deal to March 15.
— With assistance by Steven Yang