Shareholders of both Glencore (GLNCF.PK) and Xstrata (XSRAF.PK) faced an important vote on Tuesday: whether to end 10 month-long negotiations and approve a merger between the two companies. The deal, which was initially announced in February, would effectively unite Xstrata’s copper, coal, and nickel yield with Glencore’s marketing and trading capabilities.
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At 12-minute long meeting in Zug, Switzerland, more than 99 percent of Glencore’s voting shareholders approved the $31 billion takeover. After an initial resolution failed to pass, Xstrata shareholders also voted to approve the merger, with close to 80 percent of voting shareholders in favor of the deal. The second resolution excluded a provision that would have allowed the mining company’s key managers to keep their positions; the retention plan will be voted on separately at a later date.
In late September, the merger hit several barriers, but upon a revised offer from Glencore, Xstrata’s board recommended that its shareholders support the deal. As a result, shareholders were given two resolutions to consider; one that included $232 million of retention bonuses for key managers and a second one without the pay stipulation.
The deal is still subject to antitrust approvals by the European Commission.
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