Competition tribunal gives Glencore’s Xstrata takeover the go-ahead

But the tribunal attached some conditions to the $33-billion deal to limit the merger's impact on job losses in the crucial mining sector.

One of the conditions stipulates that job losses among skilled workers be limited to a maximum of 80 workers, the tribunal said in a statement.

Job losses among unskilled or semi-skilled workers shall be limited to 100 and may only take place more than two years after the merger has been fully approved by all affected jurisdictions.

The job loss conditions do not include voluntary leave or early retirement packages and would also not apply to workers who refuse to be redeployed.

Smooth sailing
The approval of the merger in South Africa went through smoothly after power utility Eskom withdrew its objections last week following an agreement with Glencore that would limit the impact of the merger on its coal supplies.


The utility relies on coal-fired plants to generate 85% of the electricity that powers Africa's biggest economy and was keen to ensure the merger did not hamper its ability to obtain timely, sufficient and competitively priced coal.

Glencore is still waiting for the go-ahead for the deal from antitrust authorities in China, having already received a conditional approval from European regulators.

Last Friday Glencore pushed back the date for completion of the long-awaited tie-up to March 15, citing lengthy regulatory processes in South Africa and China. – Reuters

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Reuters
Guest Author

Related stories

Department warns mines to comply

Estimates hint that the scaling down of work in response to Covid-19 will result in a sharp drop in production in April and by 4.5% for the year

Eskom loses billions on coal contracts

The beleaguered utility has been paying vastly different prices to its various suppliers

Zondo commission to hear how the Guptas nabbed their Optimum coal mine

Former Glencore CEO Clinton Ephron will take the stand on Wednesday and is set to outline how the company was pressured into selling the Optimum mine

Zwane’s role in alleged Eskom corruption ‘cannot be ignored’

The former minister’s role in Gupta-owned Tegeta’s acquisition of the Optimum Coal Mine is to be closely probed by Zondo commission

Glencore pledges to limit coal production

Glencore notes it is well-positioned to support the transition to a lower-carbon economy

Wild swings in Sasol’s fortunes

The company’s shares have seesawed madly – largely because of the volatility of the oil price and the rand
Advertising

Subscribers only

FNB dragged into bribery claims

Allegations of bribery against the bank’s chief executive, Jacques Celliers, thrown up in a separate court case

Dozens of birds and bats perish in extreme heat in...

In a single day, temperatures in northern KwaZulu-Natal climbed to a lethal 45°C, causing a mass die-off of birds and bats

More top stories

Blast rocks Durban’s Engen refinery

Residents are being evacuated as firefighters battle to control the blaze

ConCourt asked to rule that Zuma must testify for 10...

It is Zondo's legal end game and will leave the former president, his supporters and those implicated in state capture to increasingly play fast and loose at imputing political motive to the commission

Carlos on Oozymandias’ goodbye grift

"Look on my works ye Mighty, and gimme 50 bucks!"

This is how the SIU catches crooks

Athandiwe Saba talked to the Special Investigating Unit’s Andy Mothibi about its caseload, including 1 000 Covid contracts
Advertising

press releases

Loading latest Press Releases…