Qatar to back $33bn Xstrata takeover deal

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Qatar Holding has said it will back Glencore's raised bid for miner Xstrata, paving the way for the $33bn takeover deal to go ahead.

Qatar, an unexpected kingmaker in commodity trader Glencore's bid for Xstrata, said on Thursday that it would vote in favor of two key resolutions on the takeover, meaning Glencore's plan to create a mining and trading powerhouse is on track.

The vote, which is scheduled for November 20, ten months after Glencore first approached Xstrata, comes after Glencore in September bowed to investor pressure and raised its bid to 3.05 new shares for every Xstrata share from an earlier ratio of 2.8.

Under a complex structure of votes, Xstrata investors will be able to express their views on a controversial management retention plan without endangering the merger.

Qatar said it would abstain from voting on the pay plan.

The tiny gas rich Gulf state built up a stake of more than 12 percent in Xstrata - a key position in a deal structure that allows just 16.5 percent of Xstrata shareholders to block any bid.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Austerity? Not for us, say rich Gulf states as oil slides

Austerity? Not for us, say rich Gulf states as oil slides

Economic defences which the Gulf states built up after the global...

Saudi Arabia builds start-up culture with state oil money

Saudi Arabia builds start-up culture with state oil money

Gov't has previously has found it hard to promote start-ups in...

Why PE's back in vogue in the Middle East

Why PE's back in vogue in the Middle East

Confidence is returning to the Gulf’s private equity market after...

Most Popular
Most Discussed