Glencore International ran into delays obtaining the approval of regulators in South Africa. The commodities trader had been forced to move the deadline for the completion of its $33 billion proposed takeover of Xstrata to January 31, 2013 as it prepares to defend its case this week.
Eskom, the South African power utility company, had been concerned that its coal supplies would be affected by the Glencore-Xstrata merger.
Glencore is one of Eskom’s biggest suppliers of coal. It is also one of the important producers of the commodity in South Africa. In addition, the South African government workers pension owns significant shares in the company.
According to Ventures Africa, Glencore and Xstrata requested additional time to prepare their defense. The hearing was postponed until January 18, 2013.
The European Union and the shareholders of both companies have already approved the merger. However, antitrust regulatory processes in China and South Africa have bogged down the merger.
A Glencore-Xstrata merger will possess more than $140 billion of revenue. Up to 80% of sales will come from the mining sector.
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