(Reuters) – Commodities trader Glencore (GLEN.L) is set to all but clinch its $30 billion takeover of Xstrata this week, despite a potential snub for the miner’s board if, as expected, investors scrap a controversial pay plan for its managers.
Shareholders in both Glencore and Xstrata (XTA.L), the world’s fourth-largest diversified miner, will vote in Switzerland on Tuesday.
European competition regulators will decide by Thursday whether to give the green light to one of the sector’s biggest ever acquisitions, or begin a longer probe.
After nine months of unexpected twists and wrangling between Xstrata and its top shareholders – not to mention years of on-off talks between the miner and trader – the deal is moving towards the finish line, a victory for Glencore’s boss, top shareholder and the deal’s chief cheerleader, Ivan Glasenberg.
The deal’s prospects were boosted last week thanks to support offered by Xstrata’s second-largest investor, Qatar, overcoming initial reticence over the terms of the deal. Glencore, Xstrata’s top shareholder, has separately offered up antitrust concessions, in the hope of securing an EU nod.