The Chinese MOFCOM clears a merger in the mining industry (Glencore Xstrata / Las Bambas)

At long last, Glencore has overcome the final regulatory hurdle and secured the approval of China's Ministry of Commerce (MOFCOM) to acquire the 66 percent of Xstrata that it does not already own. But not before agreeing to part with one of the prized assets in Xstrata's portfolio, the Las Bambas copper project in Peru. If no suitable buyer for Las Bambas is found by September 2014, Glencore will have to auction off one of its other copper assets of MOFCOM's choosing. To clinch MOFCOM's blessing of the deal Glencore also committed to continue offering long-term supply arrangements to sell copper concentrate to Chinese customers, as well as somewhat less stringent supply commitments on zinc and lead concentrates. It has been a long road for Glencore and Xstrata who announced their

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Authors

  • Mattel (Hong Kong)
  • White & Case (Hong Kong)
  • White & Case (London)

Quotation

Patrick Ma, John Tivey, Rebecca Campbell, The Chinese MOFCOM clears a merger in the mining industry (Glencore Xstrata / Las Bambas), 13 April 2014, e-Competitions April 2013, Art. N° 66617

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