Shareholders of Swiss-based Glencore International have voted overwhelming to support the company's $67 billion merger with miner Xstrata. At a meeting this morning, more than 99% of Glencore's shareholders voted to support the deal.
That was the easy part. Glencore already owned nearly 35% of Xstrata, and under September's revised offer the big trading house was able to vote its shares. Now, just 50% of Xstrata's shareholders need to approve the deal and that is expected to happen later today. The mining company's second largest shareholder, Qatar's sovereign wealth fund, has indicated that it supports the deal.
Once the merger is finally approved, shareholders will get a separate vote on the retention packages for Xstrata executives. The packages, worth a total of about $223 million, have been a sore spot with shareholders, and there is every chance that this part of the deal will not get passed. Whether or not the retention deal is passed will have no impact on the merger votes.
Filed under: 24/7 Wall St. Wire, Commodities & Metals, International Markets, Mergers & Acquisitions, Mergers and Buy Outs