Xstrata shareholders back Glencore merger
The merger of Xstrata and Glencore is set to go ahead after shareholders of both firms backed the deal.
Shareholders at mining company Xstrata have voted to back the proposed merger with commodity firm Glencore, with 90.08 per cent in favour.
The decision followed an overwhelming vote earlier yesterday (November 20th) by Glencore shareholders to back the move.
Firms involving in merger negotiations may find using the services of merger and acquisition consultants can help them get a similarly emphatic vote in favour from their shareholders.
The vote was conducted in a way that enabled the Xstrata shareholders to undertake a separate vote on proposed revised management incentives, which they rejected.
Commenting on the decision, Xstrata Chairman Sir John Bond said: “We welcome shareholders’ support for the merger with Glencore today, which underlines the sound strategic rationale for a combination of the two companies."
He added that in light of the management incentives vote, he will be stepping down once the merger process is complete.
The Glencore vote had produced 99.42 per cent support for the merger, with 97.17 per cent in favour of changing the company name.
Posted by Ken Hayes