By Alex MacDonald
LONDON--Anglo Swiss miner Xstrata PLC (XTA.LN), which is close
to finalizing a multi-billion dollar merger with commodities titan
Glencore International PLC (GLEN.LN) said Tuesday that seven of its
senior executives plan to step down from the combined company once
the deal closes on May 2.
The Xstrata executives include Chief Executive Mick Davis, said
he would no longer assume the role of interim CEO of the combined
company for six months, as originally planned. It also includes
Chief Financial Officer Trevor Reid, who had already said he would
step down from the company after the deal closes.
Senior Xstrata executives Charlie Sartain, copper CEO; Ian
Pearce, nickel CEO; Loutjie Smit, interim CEO of alloys; Thras
Moraitis, executive general manager and Benny Levene, chief legal
counsel, will also step down on the effective closure date. All
seven executives have agreed to act as consultants to the combined
company which will be called Glencore Xsrata PLC for a period of up
to six months following the deal closure to support the integration
of their respective functions.
The news of the executives' departure follows Glencore's Tuesday
announcement that it has received final regulatory approval from
China for the merger. It also echoes the Xstrata board's warning
last year that some of its senior executives might leave if
shareholders failed to approve a controversial retention package to
pay some 70 personnel a total of 140 million pounds ($215 million)
to stay . The retention package was voted down by Xstrata
shareholders last year.
A person familiar with the matter said "Glencore is keeping the
people that it wants to keep."
"I look back on the past 11 years at Xstrata with enormous
satisfaction," Mr. Davis said. "I have had the great pleasure and
privilege of working with a talented and committed group of
leaders. Together we were able to build a $50 billion global
company from a $500 million minnow, delivering significant returns
to our shareholders in the process."
Write to Alex MacDonald at alex.macdonald@dowjones.com
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