November 20, 2012 / 5:21 PM / 5 years ago

Timeline - Glencore closes in on Xstrata deal

(Reuters) - Glencore’s $31 billion takeover of miner Xstrata got the go-ahead from both sets of shareholders on Tuesday. Europe’s antitrust regulators are due to give their verdict by Thursday.

Here are the major steps this year that have led to the deal.

February 7, 2012 - Glencore and Xstrata agree an all-share merger to create a commodities powerhouse, spanning mining, agriculture, oil and trading. Glencore offered 2.8 new shares for every Xstrata share.

April 9 - Qatar’s sovereign wealth fund increases its stake in Xstrata to just over 5 percent and becomes Xstrata’s third-largest shareholder behind Glencore and asset manager BlackRock Inc.. Qatar raises its stake in Xstrata again to over 10 percent in June.

May 31 - The two companies detail the terms of the deal, including a three-year retention package to be worth millions of dollars for Xstrata boss Mick Davis. He is to stay on as chief executive of the combined group, with Glencore’s Ivan Glasenberg as deputy chief executive.

June 26 - Qatar demands better terms for the deal asking for 3.25 new Glencore shares for every Xstrata share, up from the 2.8 on offer - the first time Qatar’s sovereign wealth fund has taken such an activist role in one of its holdings.

July 11 - Xstrata says shareholders will vote on September 7 on the miner’s planned takeover by Glencore, effectively giving the commodities trader and rival investor Qatar six weeks to hammer out an agreement on the terms.

September 7 - After last-minute, late-night talks that ended hours before a scheduled shareholder vote, Glencore raises its offer for Xstrata, hoping to rescue the deal by wooing Qatar and other key investors. Glencore’s Glasenberg will now lead the combined company. Xstrata shareholders had been expected to reject the merger on the original terms.

Glencore proposes a revised offer of 3.05 new shares for every share it does not already own, up from 2.8.

October 1 - Xstrata gives its long-awaited blessing to the revised bid from Glencore, bowing to investor pressure to push through a new vote structure, in order to ensure the merger isn’t sunk by a payment plan to retain top managers.

November 15 - Qatar says it will vote for two key resolutions on the takeover but will abstain from voting on the multimillion-pound management retention plan, increasing the chances of that aspect of the deal being voted down.

November 20 - Glencore shareholders vote in favour of its $31 billion takeover of Xstrata. Xstrata shareholders also back the deal, while voting down the retention plan. Xstrata chairman John Bond resigns.

Reporting by David Cutler, London Editorial Reference Unit; Editing by Erica Billingham

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below