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China: As last hurdle standing, authority may use $35B mining merger to nation’s advantage

By  |  March 7, 2013

As China’s antitrust authority MOFCOM remains the last hurdle to pass before Glencore can take over Xstrata for $35 billion, reports say that the case brings more to light about MOFCOM as the world’s newest and “least predictable” major competition authority. MOFCOM remains the only major watchdog to consider it’s nation’s industrial policies as the authority eyes how the merger – the largest in history within the industry – will affect the copper market. Reports say China is the largest buyer of materials that Glencore trades and mine; sources say that because China needs the copper Glencore mines, the authority is unlikely to block the deal. The nation could, however, impose conditions on the merger to ensure sufficient supplies. Also according to reports, analysts have been surprised at China’s response in focusing on copper; European regulators focused more on the European zinc market.

 

Full Content: Reuters

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