(Adds details)
By Foo Yun Chee
BRUSSELS Oct 29 (Reuters) – EU antitrust regulators have
told trader Glencore to offer concessions in its zinc
operations to ease concerns about its planned $33 billion buy of
miner Xstrata, a person familiar with the matter said on
Monday.
The European Commission, which handles competition
regulation in the 27-member European Union, is currently
examining the deal and has set a Nov. 8 deadline for its
decision.
The EU competition watchdog told Glencore about its concerns
on Friday and has given the world’s largest diversified
commodities trader until Tuesday to come up with concessions,
the source said.
Neither Glencore nor Xstrata had any comment.
The European Commission was not immediately available for
comment.
Analysts say the combined company could have 50 percent of
the European market for zinc, making that a logical area of
concern for regulators. Zinc is used in metal alloys, especially
in applications where it can prevent corrosion.
Industry analysts said the most likely concession could be
the disposal of Xstrata’s San Juan de Nieva refinery in Spain,
the largest zinc production unit in the world.
Another option would be for Glencore to review its offtake
deal with world No. 1 zinc producer Nyrstar. The deal
with the Belgian company was extended last year and is due to
expire in 2018.
(Reporting by Foo Yun Chee; additional reporting by Clara
Ferreira-Marques; editing by Rex Merrifield and David Cowell)
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