Mining Group Xstrata and Commodoties Trader Glencore’s merger has been approved by China.
The long-awaited merger came after Glencore agreed to sell its stake in Xstrata’s copper mining project in Peru to a buyer approved by Chinese authorities.
In addition, Glencore agreed to supply a minimum volume of copper concentrate to China for a period of about eight years.
The Xstrata and Glencore merger will form one of the world’s biggest metals and commodities firms.
In February 2012, it was first announced that the merger will be sealed but the completion date has been pushed back several times. This is due to concerns raised over the influence the combined entity may have on the global commodity markets.
China, which is one of the world’s biggest commodity consumers, had been examining what share a combined company would have in the market for copper concentrates.
Mick Davis, Xstrata CEO will no longer head the combined operations for the first six months.
Ivan Glasenberg, Glencore CEO will take charge of operations straight away.
Several Xstrata Senior Executives will depart from the company.