Xstrata takeover given the green light

THE takeover of Xstrata by Swiss commodity powerhouse Glencore has been given approval by the European regulator, provided Glencore meets a number of conditions.

The European Commission reportedly gave the thumbs-up to the deal as long as Glencore dropped an exclusive contract with a European zinc producer.

EC's concerns were that if the new combined firm held the contract, it would amount to 50% of Europe's market share.

That would now be brought down to about 40%.

The EC will also force Glenore to dump its 7.8% stake in the producer, worth about $70 million.

Reuters reported Glencore must now convince China and South African authorities the deal was appropriate.

Xstrata owns four mines in Queensland including Collinsville, Newlands, Oaky Creek and Rolleston.

It is also developing the giant Wandoan mine in south-west Queensland and the Balaclava Island port off Rockhampton.

Earlier this week, a representative told a Brisbane conference that its Wandoan project was not guaranteed to go ahead but would not say if the Glencore-Xstrata deal was the cause.

Topics:  commodities europe glencore switzerland xstrata

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