Pretoria, South Africa — 11 December 2012 – International commodities trader Glencore International plc has extended the deadline to complete its US$33 billion takeover of global mining giant Xstrata plc by a month, following delays in getting regulatory approval in South Africa.
Bloomberg News reports that South Africa’s Competition Tribunal earlier postponed hearings on the transaction that were due to start yesterday. They will now take place on January 18, January 21 to 23 and January 28, the antitrust body said in an e-mailed statement. The deadline to complete the deal will be extended to January 31, Baar, Switzerland-based Glencore and Xstrata said in statements.
South Africa’s power utility Eskom Holdings SOC Limited has concerns over its ability to secure timely and competitively-priced coal after the takeover. The combined entity would account for about 15% of Eskom’s coal supplies, said the utility that supplies about 95% of the country’s electricity.
The postponement of the hearings was requested by Glencore and Xstrata, and relates to the scope of Eskom’s intervention in the review, Nandi Mokoena, a spokeswoman for the tribunal, said by phone.
On November 22, Glencore won European Union approval for its takeover of Zug, Switzerland-based Xstrata, after offering to end a zinc-purchase agreement with Nyrstar (NYR) NV and to sell its stake in the company. Chinese commerce ministry approval is also outstanding for the deal, which will create the world’s fourth- biggest mining company.
Source: Bloomberg News. For more information, click here.