{"id":7665,"date":"2012-02-06T01:43:28","date_gmt":"2012-02-05T23:43:28","guid":{"rendered":"http:\/\/www.myza.co.za\/02\/glencore-xstrata-hammering-out-final-deal-details\/"},"modified":"2012-02-06T01:43:28","modified_gmt":"2012-02-05T23:43:28","slug":"glencore-xstrata-hammering-out-final-deal-details","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/glencore-xstrata-hammering-out-final-deal-details\/","title":{"rendered":"Glencore, Xstrata hammering out final deal details"},"content":{"rendered":"

\t\t<\/span><\/p>\n

By Clara Ferreira-Marques and Victoria Howley<\/span><\/p>\n

<\/span><\/p>\n

CAPE TOWN\/LONDON<\/span> Feb 5 (Reuters) – Top executives at
\ntrader Glencore and miner Xstrata are hammering
\nout the final details of an $80 billion tie-up to seal the
\nindustry’s largest ever takeover, which could be announced as
\nearly as Tuesday.<\/p>\n

<\/span><\/p>\n

Xstrata, in which Glencore already has a 34 percent stake,
\nannounced last week it had been approached by the world’s
\nlargest diversified commodities trader and was in discussions
\nover an all-share “merger of equals”, a deal that would be the
\nlargest in the sector since Rio Tinto’s takeover of Alcan in
\n2007.<\/p>\n

<\/span><\/p>\n

The agreement is set to be announced this week, potentially
\nTuesday, when Xstrata is due to publish 2011 results.<\/p>\n

<\/span><\/p>\n

One source involved in the proceedings described the mood
\nbehind the scenes over the weekend as “constructive”, and others
\nsaid brushed off concerns the latest round of talks would
\ncollapse over either of the two hurdles that have tripped them
\nup in the past — governance and price.<\/p>\n

<\/span><\/p>\n

The two groups, which restarted discussions before Christmas
\nafter years of on-off talks, have reached a preliminary
\nunderstanding on the structure of the top management, according
\nto sources familiar with the deal, with Xstrata expected to take
\na majority of seats on the board, to keep its chairman, City
\nheavyweight John Bond, as well as its chief executive, Mick
\nDavis, and its chief financial officer, Trevor Reid.<\/p>\n

<\/span><\/p>\n

Glencore Chief Executive Ivan Glasenberg, who will be the
\nlargest single shareholder in the combined mining and trading
\nentity, is expected to hold a deputy position.<\/p>\n

<\/span><\/p>\n

Davis, who has been at the helm of Xstrata for a decade, is
\nexpected to receive an up to 10 million pound ($16
\nmillion)retention package in the event of “change of control”,
\nto stay on as chief executive, the Sunday Times reported.<\/p>\n

<\/span><\/p>\n

In the past, the issue of price and premium and the
\ndifficult valuation of Glencore’s marketing business has
\nseparated the two companies, but the two are this time
\ndiscussing a percentage premium to Xstrata’s share price in the
\n“low single digits” — effectively a ratio to balance out the
\nvalue of both companies, according to several of the sources.
\n\u00a0 Continued…<\/strong><\/span><\/p>\n

<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

By Clara Ferreira-Marques and Victoria Howley CAPE TOWN\/LONDON Feb 5 (Reuters) – Top executives at trader Glencore and miner Xstrata are hammering out the final details of an $80 billion tie-up to seal the industry’s largest ever takeover, which could be announced as early as Tuesday. Xstrata, in which Glencore already has a 34 percent […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-7665","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/7665","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=7665"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/7665\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=7665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=7665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=7665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}