Eskom reaches agreement with Glencore, reports claim

The proposed merger of London-listed mining company Xstrata and Glencore appeared to move a step for forward on Friday morning after it was reported that South African power utility provider Eksom had withdrawn its intervention from the Competition Tribunal.

The proposed merger of London-listed mining company Xstrata and Glencore appeared to move a step for forward on Friday morning after it was reported that South African power utility provider Eksom had withdrawn its intervention from the Competition Tribunal.

According to an article published on miningweekly.com, Eksom reached a confidential agreement with Glencore and Xstrata relating to a negotiation process to determine Eksom's future relationship with the merged entity.

At the Tribunal, lawyers representing both Eksom and the merging companies announced that pre-hearing discussions had resulted in an agreement on a separate but confidential negotiation process that would govern the future relationship.

Eksom advocate Rafik Bhana confirmed that the utility firm would not be continuing with its intervention.

It was reported that in a joint media statement, Eskom and Glencore said the agreement "establishes a framework within which the two companies will cooperate with each other on a mutually beneficial basis and govern the interaction between them regarding existing and future coal supply agreements".

The news came on the same day that Xstrata and Glencore published an update stating that the time frame for the proposed merger had been extended for a third time.

MF

Recommended

Too embarrassed to ask: what is short selling?
Too embarrassed to ask

Too embarrassed to ask: what is short selling?

Short sellers are often accused of unfairly driving share prices down to make a quick buck. But short selling is a perfectly legitimate – if risky – t…
26 Jan 2021
Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Bitcoin does consume a lot of energy – but here’s why it’s worth it
Bitcoin

Bitcoin does consume a lot of energy – but here’s why it’s worth it

Some people question bitcoin’s legitimacy because it uses huge amounts of electricity to maintain its network. But that’s not a failing, says Dominic …
27 Jan 2021
Joe Biden’s spending spree will lift American spirits and markets – but it comes with a sting in the tail
US stockmarkets

Joe Biden’s spending spree will lift American spirits and markets – but it comes with a sting in the tail

New US president Joe Biden is planning to throw trillions of dollars in stimulus at his country’s economy. Markets will love that. But it comes with a…
25 Jan 2021
Think Tesla is a bubble? This might be the best way to bet on it bursting
Oil

Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. …
25 Jan 2021