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Glencore notifies EU of Xstrata bid for merger review

 |  June 20, 2012

After “constructive consultation,” commodities trader Glencore will formally notify the EU of its proposed $37 billion acquisition of mining company Xstrata for review under merger regulations. Although the combined entity would be the world’s third-largest producer of mined copper, the largest zinc miner, and the largest exporter of thermal coal, the parties and analysts do not anticipate competition concerns. Xstrata CEO Mick Davis noted, “In the past, the European Union has always treated Xstrata and Glencore as one unit. I take that as a precedent, and I don’t think that any of the volume in itself actually causes a problem in different jurisdictions.”

Source: Bloomberg