BRUSSELS--Commodities trader Glencore International PLC
(0805.HK) Thursday won regulatory approval from the European Union
for its multi-billion merger with Xstrata PLC (XTA.LN), after it
improved its initial offer of divestments to allay competition
concerns in the zinc market.
To clear the deal, Glencore agreed to cancel its off-take
contract with Nyrstar, the world's largest zinc metal producer, and
is giving up its 7.8% minority shareholding in the company. The
regulatory green light, which comes after a final stretch of tough
negotiations, means it has averted a protracted review of the deal
and won't have to relinquish one of its smelters to clinch
approval.
"The proposed remedy ensures that competition in the European
zinc metal market is preserved, so that European customers such as
steel galvanisers and car makers can continue to produce valuable
consumer goods at low prices and good quality," the EU's antitrust
chief, Joaquin Almunia, said in a statement.
As part of the deal, the Swiss commodities trader agreed not to
engage, for ten years, in any other practices which have the effect
of materially restricting Nyrstar's ability or incentive to compete
effectively with Glencore in zinc metal in Europe.
Write to Vanessa Mock at vanessa.mock@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires