Commodity trader Glencore's takeover of miner Xstrata has received the backing of Qatar Holdings, Xstrata's second largest shareholder.
On Thursday, Qatar Holdings (QH) released a statement in which it announced: "QH continues to see merit in a combination of the two companies and is satisfied with the terms of the proposed merger, having secured the improved exchange ratio of 3.05 new Glencore shares for every one existing Xstrata share."
Qatar will therefore use its 11.67% shareholding to support the deal at the meetings to be held on November 20th.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Separately, Reuters reports that Glencore has offered to sell Xstrata's German zinc smelter to win EU regulatory approval for the deal.
CM
-
BT cuts revenue forecast – what's next for the telecoms giant?BT has trimmed its sales forecast, but the overall outlook remains positive and big investors have bought in. Should you invest?
-
China unveils £1.08tn stimulus package to tackle hidden debtChina's new stimulus package addresses local government debt but fell short of many investors' expectations – here's why
