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Wednesday, November 14, 2012, 1:06 PM As expected, Qatar Holdings is reportedly backing Glencore's (GLCNF.PK) takeover of Xstrata (XSRAY.PK), along with the retention bonuses for Xstrata executives, according to Bloomberg. Comment! [M&A, Breaking News, Commodities, Global & FX]
Monday, November 12, 2012, 10:56 AM Standard Life Investments, a major shareholder of both Xstrata and Glencore, says it will vote in favor of the proposed merger of the companies but against the retention package. It expects the deal to close, based on indications that Xstrata shareholder Qatar Holding supports the merger and since shareholders can vote on the retention package without affecting their vote on the deal. Comment! [Commodities, M&A]
Monday, November 12, 2012, 3:37 AM Glencore's (GLCNF.PK) $68B merger with Xstrata (XSRAY.PK) could be scuppered by a complex shareholder approval process even though most investors seem to favor the deal. Xstrata shareholders will next week be asked to vote on three options: a deal that includes controversial retention payments; on one that doesn't; and on the retention payments themselves. There has to be agreement between one of the first two scenarios and the last one for the deal to pass. Comment! [M&A, Commodities]
Friday, November 9, 2012, 11:11 AM Glencore's (GLCNF.PK) takeover of Canadian grain handler Viterra (VTRAF.PK) may not close until as late as Dec. 10, as China's Ministry of Commerce continues to review the $6.1B deal. Speculation is that China is delaying until Canada decides on whether to approve Cnooc's takeover of Nexen. Also affected are Glencore's side deals to flip some Viterra assets to Agrium (AGU), CF Industries (CF) and others. Comment! [Commodities, M&A]
Thursday, November 8, 2012, 2:46 PM One of Britain's top shareholder advisory groups urges Xstrata (XSRAY.PK) investors to reject Glencore's (GLCNF.PK) takeover plan; it's concerned over the level of due diligence carried out on Glencore given the complexity of its business and insufficient independent board representation at Xstrata. U.S. advisory firm ISS at least partially warmed to the plan in recent days. Comment! [Commodities, M&A]
Sunday, November 4, 2012, 3:25 AM UPS's (UPS) €5.16B acquisition of TNT Express needs "substantial remedies" to allay antitrust concerns, EU competition chief Joaquin Almunia has said, adding that the bloc's review of Glencore's (GLCNF.PK) bid for Xstrata (XSRAF.PK) is "well advanced." In addition to looking at high market share, which is "not always problematic," Almunia said, regulators look at the impact of a deal on pricing, quality, choice and innovation. Comment! [M&A, Commodities]
Friday, November 2, 2012, 4:31 PM The proposed merger of Glencore (GLCNF.PK) and Xstrata (XSRAF.PK, XSRAY.PK) receives a boost as shareholder advisory group ISS backs the new terms of the $80B deal and reverses some of its earlier comments. But ISS recommends against payouts Xstrata has put in place to retain its most senior executives. Comment! [Commodities, M&A]
Friday, November 2, 2012, 11:44 AM Glencore (GLCNF.PK) is among a group of suitors considering an offer for Anglo American's majority stake in the Amapa iron ore operation in Brazil, Reuters reports. Anglo bought control of Amapa in 2008 as part of its $5.5B Minas Rio acquisition, but it deemed the asset non-core last year. Glencore has ambitions to grow in iron ore, a key steelmaking ingredient in which it is not a major player. Comment! [Commodities, M&A, Global & FX]
Wednesday, October 31, 2012, 8:15 AM The EC extends its review of the proposed merger of Glencore (GLCNF.PK) and Xstrata (XSRAY.PK, XSRAF.PK) to Nov. 22 from Nov. 8 after Glencore made concessions to allay European Union competition concerns. Glencore reportedly has offered to sell some zinc assets; the combined company would be the world's largest zinc miner and fifth-largest exporter of hard coal. Comment! [Commodities, M&A]
Monday, October 29, 2012, 4:21 PM Glencore will offer to sell some zinc assets in an attempt to win fast-track EU approval for its merger with Xstrata, FT reports. The EC reportedly has relayed serious doubts about the merger, particularly regarding its effect on the European zinc market, and will open a full probe unless antitrust problems are decisively addressed; such a probe could delay regulatory approval until next spring. Comment! [Commodities, M&A]
Thursday, October 25, 2012, 9:58 AM Glencore (GLCNF.PK) sets Nov. 20 as the new date for delayed shareholder meetings to vote on a merger with Xstrata (XSRAF.PK, XSRAY.PK). Since Glencore cannot vote with its 34% stake in Xstrata, and taking into consideration the expected turnout, people close to the deal say that "no" votes from just 12% of Xstrata shares would be enough to kill the merger. Comment! [Commodities, M&A]
Monday, October 15, 2012, 8:10 AM Qatar PM Sheikh Hamad says the Gulf state is "in favor" of a merger between Glencore and Xstrata, in which it is an important shareholder. However, Hamad doesn't say whether Qatar is satisfied with all the elements of Glencore's increased bid, nor whether the state would vote for it. Comment! [Commodities, M&A]
Wednesday, October 3, 2012, 7:58 AM The EU confirms that it will decide whether to approve Glencore's merger with Xstrata by Nov 8. Glencore may offer concessions to avert an in-depth probe, which could take up to 105 working days. The EU could focus on the market power of the new entity, which would be the world's largest thermal coal exporter, the biggest producer of zinc and ferrochrome, and the third-largest copper producer. Comment! [M&A, Commodities]
Tuesday, October 2, 2012, 2:07 PM Glencore reportedly has formally notified the European Commission of its plan to take over Xstrata, setting the European regulatory clock ticking on the deal. The EC then would have 25 days to decide whether to approve, reject or begin an in-depth probe into the proposed merger. Approval from China's Ministry of Commerce also is needed. Comment! [M&A, Commodities]
Monday, October 1, 2012, 11:12 AM Glencore (GLCNF.PK) reportedly has pulled out of talks discussing a possible offer for an Alcoa (AA +1.7%) smelter in Sardinia after the Italian government rejected its request to provide discounted energy prices. Alcoa has decided to close the plant, blaming high power prices in Italy for undermining the competitiveness of the plant. Comment! [Commodities, Global & FX]
Monday, October 1, 2012, 10:18 AM While the merger of Glencore and Xstrata looks headed for completion, the question now is more fundamental: Will Glen-strata thrive in a mining sector already full of challenges? While the investment case is attractive, "it is not without risk,” Jefferies says. “The merged company would still have high financial leverage and high earnings sensitivity to changes in commodity prices.” Comment! [M&A, Commodities]

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