Zug, Switzerland — 17 April 2013 – Xstrata plc CEO Mick Davis has agreed with Glencore International plc to not take up the six month role of CEO and executive director of Glencore Xstrata plc following completion of the merger of the two companies.
Consequently Davis will step down from Xstrata plc upon completion of the merger, currently expected to be on 2 May 2013, allowing Glencore CEO Ivan Glasenberg to assume the role of CEO of the combined group from the effective date.
Davis has agreed to act as consultant to the combined group until 30 June 2013 in order to support the integration process. Pursuant to the terms of the merger, Davis’s position on the Glencore Xstrata Board will be taken by a current Xstrata executive from the effective date.
A number of other Xstrata plc executive committee members have indicated their intention to step down from their roles on the effective date.
As previously announced, Xstrata’s chief financial officer Trevor Reid has decided not to take up the position of CFO of Glencore Xstrata plc on completion of the merger. Xstrata copper chief executive Charlie Sartain, nickel chief executive Ian Pearce, and Loutjie Smit, interim chief executive of Xstrata Alloys, will leave the company on the effective date.
Executive general manager, strategy and corporate affairs Thras Moraitis, and chief legal counsel Benny Levene will also step down on the effective date but, along with Trevor Reid, have agreed to act as consultants to the combined group for a period of up to six months in order to support the integration of their respective functions.
Davis commented: “My executive team and I are pleased to hand over to the new Glencore Xstrata a company with a strong legacy for value creation and growth, a high quality portfolio of operations and growth options, supported by a very healthy balance sheet. As importantly, we are certain that each of our 84,000 employees and contractors will bring to the new merged entity the unique set of capabilities and values which have made Xstrata so successful and, in particular, an approach to sustainability which is looked to as the model for the industry.
Meanwhile, the merger has received the go-ahead from Chinese regulators in return for shedding a copper mine.
The Chinese Ministry of Commerce has given its approval subject to conditions. Xstrata must give up the US$5.2 billion Las Bambas copper mine in Peru, and sale completion must occur by June 2015. The company also agreed to eight years of supply commitments to Chinese customers covering copper, zinc and lead.
Source: Xstrata plc. For more information, click here.