Mergers: Commission approves Glencore's acquisition of Xstrata, subject to conditions

The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Xstrata, the world's fifth largest metals and mining group, by Glencore, the world's leading metals and thermal coal trader. The clearance is conditional on the termination of Glencore's off-take arrangements for zinc metal in the European Economic Area (EEA) with Nyrstar, the world's largest zinc metal producer, and the divestiture of Glencore's minority shareholding in Nyrstar. The Commission had concerns that the merged entity would have the ability and incentive to raise prices for zinc metal, an important input for many EU industries. The commitments address these concerns.

Commission Vice President in charge of competition policy Joaquín Almunia stated: "The merger will bring together two major global players in key commodities. The proposed remedy ensures that competition in the European zinc metal market is preserved, so that European customers such as steel galvanisers and car makers can continue to produce valuable consumer goods at low prices and good quality".

  ( European Commission)