Green light for Glencore


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The Independent Online

Giant commodity trader Glencore is set to get final clearance for its $32 billion (£20.9 billion) takeover of mining group Xstrata some 14 months after it first launched their bid.

Chinese Ministry of Commerce is reported to have given the deal its blessing although it may well impose some conditions on the takeover.

Formal approval could come as early as today or tomorrow.

Shares in both companies jumped more than 5% on the reports with Glencore up 16.9p at 338p and Xstrata up 59.2p to 1025.5p. Neither company would comment.

The deal has been regularly delayed as the two companies waited on regulators around the world. The Chinese approval was both the last but also one of the most important since the country is the largest consumer of the variety of commodities and metals which are produced by the combine.

Glenstrata, as it will be known, is the world's third largest producer of copper and a major supplier of coal, nickel and zinc. It will have annual revenues of around $250 billion and employs some 130,000 people.