Glencore and Xstrata have had to delay the completion of their merger for a third time after delays in getting regulatory clearance from China and South Africa.
Having pushed back the “long-stop” date from the end of December to the end of January on 10 December, the companies have still to receive the necessary approval and risked the deal collapsing without a further extension. The deal was originally expected to be completed at the end of October.
New deadline provides “flexibility”
According to a statement, the new deadline will give the companies the “flexibility to complete the merger after the release of the preliminary results should they determine that to be appropriate taking into account the status of the regulatory processes in South Africa and China.”
The size of the deal makes it particularly complex with regulatory approval required from a number of regulators. In addition to the outstanding approvals from China and South Africa, the merger is also conditional upon Glencore meeting the commitments required by the European Commission when it approved the deal in November.
Written by Jonathan Rowland.
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