Xstrata and Glencore have reached an agreement for the merger and will soon turn into a single 86 billion euro giant. The London-based mining group and the Swiss commodity giant are expected to formalize the deal before the end of the year: the exchange will be 3,05 Glencore shares for an Xstrata stock. The news was released today in a press release, which however does not specify the dates of the extraordinary general meetings which will have to approve the operation.
In detail, Xstrata has promoted the latest offer from Glencore (33 billion dollars), but on the condition that the shareholders support a plan to keep some key managers for at least two years.
However, the conditions proposed by Glencore provide that the current managing director of the group, Ivan Glasenberg, you become the number one of the company that will be born from the acquisition. The settlement will come at the expense of Xstrata veteran Mick Davis, who was expected to fill the post under the initial terms of the deal.
Glencore was forced to raise its offer last month from 2,8 to 3,05 new shares for each Xstrata stock after opposition from a Qatari investor, who threatened to derail the merger plan.
