Glencore profit drops as it eyes China approval

GLENCORE chief Ivan Glasenberg yesterday downplayed the delay in Chinese regulatory approval for its merger with Xstrata, as it posted a 25 per cent drop in net income.

The £56bn mega-merger, which has had its final completion date pushed back for the third time as it awaits the green light from China, is now due to complete on 16 April. It has already been given conditional approval from South African and European regulators.

Glasenberg brushed off concerns over the delay, adding that as a big importer of commodities China wanted to look carefully at the tie-up. He added that discussions were continuing, and the merger was due to be completed by the April date.

Glencore’s net income before significant items fell to $3.06bn (£2.02bn) over the full year, down from $4.06bn in 2011 and in line with consensus. Operating profit from its trading arm rose 11 per cent, which helped cushion a drop in adjusted operating profit of 17 per cent.

Separately, Xstrata was also hit by impairments that dragged its net profit down 79 per cent.