LENGTHY antitrust regulatory processes in China and South Africa have forced commodities trader Glencore to delay the date for completion of its tie-up with miner Xstrata until the end of January.
Glencore was expected to defend its case for the tie-up this week after South African power utility Eskom raised concerns the deal could affect its coal supplies, but the hearing was postponed until 18 January after the parties asked for more time to prepare.
Glencore said yesterday its “long stop date” was now 31 January, a month later than previously planned.
Glencore is still awaiting a green light from antitrust authorities in China and South Africa, having already received a conditional approval from European regulators.
Xstrata is one of South Africa’s biggest coal producers and a key supplier to Eskom.
The utility said the merged entity would be supplying 15 per cent of Eskom’s coal and would be also among the largest traders in the coal market.
City A.M. Reporter