Wednesday, 17 April 2013

Glencore-Xstrata Deal Said to Win Chinese Approval -Market Up on News

Glencore-Xstrata Deal Said to Win Chinese Approval -Market Up on News
April 16 (Bloomberg) -- Bloomberg's Manus Cranny reports that Glencore International gained approval from Chinese authorities, clearing its final regulatory hurdle in its $30 billion takeover of Xstrata. He speaks on Bloomberg Television's "The Pulse."

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http://www.bloomberg.com/video/glencore-xstrata-deal-said-to-win-chinese-approval-Y3442JgfQ_q8TUmg9gU4Cg.html








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http://www.bloomberg.com/video/glencore-wins-china-s-approval-on-30b-xstrata-deal-F8Z1sIPpThCpAhm8xgNGAA.html


Glencore International Plc (GLEN), the largest publicly traded commodities supplier, said it expects to close the $30 billion takeover of Xstrata Plc (XTA) next month after agreeing with Chinese regulators to sell a Peru copper mine.
The Ministry of Commerce in Beijing yesterday approved the deal, provided the new company disposes of the Las Bambas mine, according to a statement on the ministry’s website. BMO Capital Markets values the asset at $6.5 billion, while Liberum Capital Ltd. estimates it is worth $4.4 billion.
A sign directs visitors and goods vehicles at the headquarters of Glencore International Plc in Baar. Photographer: Gianluca Colla/Bloomberg
April 16 (Bloomberg) -- Bloomberg's Manus Cranny reports that Glencore International gained approval from Chinese authorities, clearing its final regulatory hurdle in its $30 billion takeover of Xstrata. He speaks on Bloomberg Television's "The Pulse."
China’s signoff removes the last obstacle to completing the 14-month-old acquisition. Glencore’s largest shareholder and Chief Executive Officer Ivan Glasenberg is poised to create the fourth-biggest mining company by adding coal, copper, nickel and zinc mines to a commodities trading empire. He will run the combined group from its inception, after Xstrata’s Mick Davis yesterday dropped a plan to do the job for six months.
“This seems to me another master-class of Ivan demonstrating why he’s smarter than everybody else,” Paul Gait, an analyst at Sanford C. Bernstein & Co., said by phone. “At the bare minimum, he breaks even on the capex that Xstrata have already sunk on Las Bambas which is arguably already baked into the Xstrata share price.”
Xstrata is building the Las Bambas mine at a cost of $5.2 billion, the Zug, Switzerland-based company said in January. The site is expected to produce 400,000 tons of copper a year starting 2015 for at least the first five years. Xstrata has spent about $2 billion at the site so far, Liberum analyst Ash Lazenby estimates.