By Alex MacDonald
LONDON--The chief financial officer of the Anglo-Swiss miner
Xstrata PLC (XTA.LN) Trevor Reid said Tuesday he won't be taking up
his position as CFO of the combined Glencore-Xstrata PLC
commodities group once the multi-billion dollar merger has been
completed.
Mr. Reid, who has served as CFO of Xstrata since late 2001,
didn't provide a reason for his decision to step down but Xstrata
said he will stay on board as a consultant to the combined company
for up to six months in order to ensure a smooth integration of
Xstrata and Glencore International PLC's (GLEN.LN) financial
functions.
Mr. Reid marks the third high-level departure from Xstrata since
the deal was first announced in February and the second prominent
departure since Xstrata shareholders voted down a contentious
retention package of more than GBP140 million to retain some 70
Xstrata managers, including Mr. Reid, who were deemed to be
critical for the success of the deal, according to Xstrata's
board.
Xstrata Chairman Sir John Bond last month said he would step
down from his designated position as chairman of the combined
company shortly after Xstrata shareholders approved the merger
without retention packages that his board had recommended. Xstrata
CEO Mick Davis is also leaving the combined company after a period
of six months as CEO of the combined company to ensure a smooth
transition. He will be replaced by the Glencore CEO and largest
shareholder Ivan Glasenberg.
"Trevor's decision to step down following completion of the
merger with Glencore marks the end of an extraordinarily successful
decade as CFO," said Mr. Davis in a statement. "Xstrata's growth
has been facilitated by a well-managed balance sheet, consistent
capital discipline and the financial flexibility which has enabled
us to take advantage of opportunities as they arose."
Mr. Reid, who was previously worked as a banker before joining
Xstrata, helped transform the company from a $500 million
ferrochrome and zinc business with significant debt into a globally
diversified mining company with a market capitalisation of $50
billion. During his tenure, Xstrata has raised over $17 billion
from the global capital markets, completed $35 billion of
acquisitions via 40 separate transactions and delivered a total of
$2.2 billion of real cost savings while developing more than 20
major expansions and new mining operations.
"I am very proud to have been part of Xstrata's exceptional
journey," said Mr. Reid in a statement. "The next phase of
Xstrata's evolution is now well underway and following shareholder
approval for the merger with Glencore, I have decided to step down
on completion of the transaction," he added.
Glencore and Xstrata are still awaiting regulatory approval for
a merger that would create the world's fourth largest diversified
miner with a market capitalization of about $70 billion. The two
miners are still waiting for regulatory approval from China and
South Africa in order to close the deal.
Write to Alex MacDonald at alex.macdonald@dowjones.com
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