China holds up Xstrata and Glencore merger on its fears over copper
Glencore's £56bn merger with Xstrata is being held up by the Chinese government on concerns the resulting group could wield too much influence over China's copper market.
The merger has been blessed by both sets of investors as well as the EU and South Africa, leaving Chinese approval as the only hurdle. However, while China had been expected to pass the deal, Glencore has had to postpone its expected date of completion three times as negotiations with the Chinese drag on.
Ivan Glasenberg, Glencore's chief executive, revealed yesterday that its negotiations centre on copper concentrate, which is copper ore with some of the impurities removed. "That's the one that they're looking at and that is the one which they are trying to ascertain how big our supply is into China," he said.
"We don't believe there is any particular commodity that we dominate into China, and even if you take copper as an example, there are 20 or 30 different companies supplying tonnage into China. We believe that we should meet [the 16 April] date," he added.
Mr Glasenberg was speaking after Glencore reported a 25 per cent drop in profits to $3.1bn (£2.1bn) yesterday, while its merger partner Xstrata unveiled an even bigger 37 per cent decline, to $3.6bn. Xstrata's profits fell by 79 per cent to $1.2bn after the miner took $2.6bn of impairment charges, including writedowns on its stake in the troubled South African platinum miner Lonmin and some of its other nickel and zinc assets. Adding exceptional items to Glencore's bottom-line results leaves profits 75 per cent lower at $1bn. It took $1.6bn of impairment charges, mostly linked to its investment in the Russian aluminium producer Rusal.
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...