Advertisement

Xstrata CEO to step down, others follow lead

Mick Davis, the Chief Executive Officer of mining giant Xstrata, has announced that he will not take up the six-month position in the same role in the soon-to-be merged Glencore and Xstrata.

Mick Davis, the Chief Executive Officer of mining giant Xstrata, has announced that he will not take up the six-month position in the same role in the soon-to-be merged Glencore and Xstrata.

When the merger takes place - currently expected on May 2nd - Davis will step down from Xstrata, but will stay on as a consultant until the end of June to support the integration of the two companies.

Advertisement - Article continues below

The company also announced that a number of other members of the Xstrata executive committee have indicated their intention to step down from their roles at the time of the merger.

Copper Chief Executive Charlie Sartain, Nickel Chief Executive Ian Pearce, and Interim Chief Executive of Xstrata Alloys Loutjie Smit, will all leave the company.

Executive General Manager of Strategy and Corporate Affairs Thras Moraitis, and Chief Legal Counsel Benny Levene will also step down, but, along with outgoing Chief Financial Officer Trevor Reid, have agreed to act as consultants to the combined group for up to six months following the merger in order to support the integration of their respective functions.

Davis said: "I look back on the past eleven years at Xstrata with enormous satisfaction [...] My executive team and I are pleased to hand over to the new Glencore Xstrata a company with a strong legacy for value creation and growth, a high quality portfolio of operations and growth options, supported by a very healthy balance sheet."

Glencore's share price was up 3.61% at 332.70p by 13:10, while Xstrata shares climbed 4.52% to 1,010p.

Advertisement
Advertisement

Recommended

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
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
What gold, bonds and tech stocks have in common
Stockmarkets

What gold, bonds and tech stocks have in common

"Risk off" or "safe haven" assets such as gold and government bonds have been doing well lately. But so have riskier tech stocks. That seems to defy c…
10 Jul 2020
Three ideas for Lloyds Bank's new boss
UK stockmarkets

Three ideas for Lloyds Bank's new boss

The Black Horse needs whipping into shape. A change at the top provides a great opportunity, says Matthew Lynn.
12 Jul 2020