GENEVA, SWITZERLAND – Baar-based commodities giant Glencore said Monday 10 September that its $36 billion bid for remaining shares in Xstrata would be final, after talks on the merger reached a stalemate last week.
Glencore’s revised offer, which includes the departure of Xstrata CEO Mick Davies six months after the finalization of the takeover, would require 75 percent approval by all shareholders other than Glencore. Glencore currently holds a 34 percent share in Xstrata. According to the new offer, Glencore’s chief Ivan Glasenberg would become CEO of the combined group.
Zug-based Xstrata says it will announce by 24 September whether it will present the offer to shareholders for voting.
The new bid represents 3.05 new shares for every Xstrata share held, up from 2.8 per share in the previous offer.
The merger was first proposed by Glencore in February, but failed to move ahead as the number two shareholder in Xstrata, Qatar Holding, controlled by the Gulf state’s royal family, refused the terms.