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to move a step for forward on Friday morning after it was reported that South African power utility provider Eksom had withdrawn its intervention from the Competition Tribunal.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to move a step for forward on Friday morning after it was reported that South African power utility provider Eksom had withdrawn its intervention from the Competition Tribunal.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

Ocado faces a “crunch” year – should you buy or avoid?
Share tips

Ocado faces a “crunch” year – should you buy or avoid?

Ocado was one of the big winners from the pandemic as customers moved online. But now it’s struggling, and losses are growing. So, asks Rupert Hargrea…
27 May 2022
What to buy as the tech-stock bull market crashes
Tech stocks

What to buy as the tech-stock bull market crashes

The decade-long bull market in tech stocks has come to a rapid halt. Investors need to distinguish solid stocks from speculative ones rather than just…
27 May 2022
Share tips of the week – 27 May
Share tips

Share tips of the week – 27 May

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
27 May 2022
Marks & Spencer shares look cheap – should you buy in?
Retail stocks

Marks & Spencer shares look cheap – should you buy in?

Marks & Spencer shares have been a disappointment for investors for two decades. But with the company now on something of a comeback, Rupert Hargreave…
25 May 2022

Most Popular

The world’s hottest housing markets are faltering – is the UK next?
House prices

The world’s hottest housing markets are faltering – is the UK next?

As interest rates rise, house prices in the world’s most overpriced markets are starting to fall. The UK’s turn will come, says John Stepek. But will …
23 May 2022
Scottish Mortgage Investment Trust has fallen hard. But is now the time to buy?
Investment trusts

Scottish Mortgage Investment Trust has fallen hard. But is now the time to buy?

After a spectacular couple of decades, the Scottish Mortgage Investment Trust has fallen by almost 45% so far this year. Rupert Hargreaves asks if no…
26 May 2022
Is it time to pick up growth stock bargains yet?
Investment strategy

Is it time to pick up growth stock bargains yet?

If you’re thinking of picking up some bargains from the tech stock crash, beware – there are still plenty of “growth traps” out there. John Stepek exp…
26 May 2022