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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]
Monday, October 8, 2012, 3:34 PM Xstrata (XSRAY.PK, XSRAF.PK) is the latest miner to be hit by the strike that has already shut some of South Africa's biggest gold and platinum mines (I, II, III). Xstrata says about half of the 886 employees at its Eland mine went on strike Friday and have since blocked the entrance to the mine, stopping production at the 210 oz./day platinum mine. Comment! [Commodities, Global & FX]
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, 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]
Sunday, September 30, 2012, 4:18 AM Xstrata's board is reportedly set to recommend Glencore's sweetened $80B merger bid, which includes a controversial £140M retention package for Xstrata's senior execs and gives it a majority of directors on the combined board. Crucially, major Xstrata shareholder Qatar will back the new offer and the retention package. The deadline for the company to give its recommendation is tomorrow. 1 Comment [M&A, Top Stories]
Friday, September 28, 2012, 12:19 PM Xstrata's (XSRAF.PK, XSRAY.PK) directors, facing a Monday deadline to deliver their verdict on Glencore's (GLCNF.PK) takeover bid, are hammering out a deal they hope will ensure the miner retains control of the combined group's board. But the struggle to reconcile wide-ranging shareholder views means they could still ask for more time. Comment! [Commodities, M&A]
Friday, September 21, 2012, 11:39 AM Britain's takeover regulator grants an extra week to allow Xstrata (XSRAF.PK, XSRAY.PK) to further consider its response to the revised offer from Glencore (GLCNF.PK). Xstrata now has until Oct. 1 to say whether or not it will recommend the offer to shareholders. Comment! [Commodities, M&A]
Thursday, September 20, 2012, 2:09 PM Xstrata's (XSRAF.PK, XSRAY.PK) board may recommend Glencore's (GLCNF.PK) revised offer for the company, with an announcement possible as early as tomorrow, FT reports, and the boards of the two companies are meeting today to review the final details. The final merger deadline given by regulators is Monday. Comment! [Commodities, M&A]
Thursday, September 13, 2012, 12:27 PM Xstrata's (XSRAY.PK, XSRAF.PK) board is expected to recommend Glencore's (GLCNF.PK) revised bid as early as next week, Reuters reports, although it may come with some qualification surrounding such issues as staff retention. The board could seek guarantees from Glencore for key managers, or changes could come in Xstrata's controversial retention package for top execs. Comment! [Commodities, M&A]
Tuesday, September 11, 2012, 2:38 PM Schroder Investment rejects Glencore's (GLCNF.PK) latest offer for Xstrata (XSRAY.PK, XSRAF.PK) since it doesn't represent a large enough premium, while admitting the deal seems to be gaining support among other shareholders. The fund's manager says he won't sell ahead of a potential vote on the deal, believing the mining sector is undervalued and will rally eventually. Comment! [Commodities, M&A]
Tuesday, September 11, 2012, 9:46 AM The increase in the royalty on coal output announced by Australia's resource-rich Queensland state comes just one day after two of the country's biggest mining companies, BHP Billiton (BHP) and Xstrata (XSRAY.PK) said they were cutting jobs and production. Coal producers warn the levy could prompt further job cuts and mine closures. 1 Comment [Energy]
Monday, September 10, 2012, 10:57 AM Xstrata (XSRAF.PK, XSRAY.PK) will restructure its Australian operations and cut ~600 jobs as margins are squeezed by low coal prices, high costs and a strong Australian dollar. Australia's mining boom is losing momentum as demand weakens from China, and major cutbacks have been announced by other miners, including BHP, Rio Tinto and Fortescue Metals. Comment! [Commodities, Global & FX]
Monday, September 10, 2012, 3:10 AM Glencore provides details of its improved $36B bid for Xstrata, saying that the offer of 3.05 shares per Xstrata share represents a 27% premium based on stock prices last week. Xstrata shareholder Knight Vinke yesterday rejected the new proposal, although Standard Life Investments supports it. Qatar Holdings, the key player, has so far remained silent. Comment! [M&A, Commodities]

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