Xstrata Glencore merger delayed
Xstrata and Glencore have announced their merger has been delayed.
It has not been a good week for mergers, as this morning (January 18th), mining giants Xstrata and Glencore announced they have pushed back the date they expect to complete their $31 billion (£19.5 billion) deal.
Both organisations now anticipate the merger will be finalised by March 15th.
This is the second time the acquisition – which was first announced in February 2012 – has been delayed, a development that was blamed by both parties on the ongoing challenges with regard to regulatory processes in China and South Africa.
"The parties have agreed the new long stop date in order to give them the flexibility to complete the merger after the release of the preliminary results," they said in a joint statement.
Assuming the deal gets approval from these major nations, the two international companies will still need a competition sign-off from the European Commission.
At 10:50 GMT on the London Stock Exchange today, Xstrata shares fell by 0.1 per cent to 1136.00p per unit, while Glencore's share price dropped by 0.2 per cent to 378.80p.
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