Commodities trader pushes back deadline for takeover amid talks with China's Ministry of Commerce
Swiss commodities trader Glencore has pushed back the deadline to complete its $76bn takeover of Xstrata, the fifth delay, amid continuing regulatory issues in China.
The world’s largest commodity trading company said it had “constructive discussions” with China’s Ministry of Commerce (Mofcom), who needs to approve the deal, and were now “in their final stages”.
Glencore extended the date by which it expects to close its merger with Xstrata to May 2 from April 16.
If the deal is approved, Glencore-Xstrata would become one of the world’s top commodities companies. The two companies together control copper mines which account for just under ten percent of global supply.
The tie-up has been plagued by a series of delays since Glencore first announced the deal in February 2012. The plan was renegotiated last year after shareholders, including Qatar Holding, said they would vote against it unless Glencore improved the terms of its offer.