The European Commission on Thursday gave a conditional green light to the massive tie-up between Swiss mining giant Xstrata and commodities trader Glencore that would create a global leader.
“The clearance is conditional on the termination of Glencore’s off-take arrangements for zinc metal in the European Economic Area with Nyrstar, the world’s largest zinc metal producer, and the divestiture of Glencore’s minority shareholding in Nyrstar,” it said in a statement.
Shareholders of Glencore and Xstrata — both headquartered in the tax haven of Zoug in Switzerland — on Tuesday overwhelmingly approved a merger of the two firms to create a goliath capable of out-muscling nearly everyone in their field. If it obtains the necessary regulatory approvals, Glencore-Xstrata would enter the stage as the world’s fourth-biggest commodities company in terms of market capitalization, after BHP Billiton, Vale and Rio Tinto.
Photo: Reuters
Glencore and Xstrata said last month they hoped the combined company, with a market capitalization of around 67 billion euros (US$85.5 billion) and with a combined turnover of US$209.4 billion, could come into being by the end of the year.
The long deadlocked process advanced last month when Xstrata’s main shareholder, Qatar Holding said it was satisfied with renegotiated terms of the deal.
A number of Xstrata shareholders had also been up in arms over a provision in the initial deal that would have provided massive bonuses to 73 Xstrata executives to ensure they remained with the merged company.
Under the new terms, shareholders voted separately on the merger and the bonuses, which are worth a total of £144 million (US$229 million).
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
EUROPE ON HOLD: Among a flurry of announcements, Intel said it would postpone new factories in Germany and Poland, but remains committed to its US expansion Intel Corp chief executive officer Pat Gelsinger has landed Amazon.com Inc’s Amazon Web Services (AWS) as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chipmaker. Intel and AWS are to coinvest in a custom semiconductor for artificial intelligence computing — what is known as a fabric chip — in a “multiyear, multibillion-dollar framework,” Intel said in a statement on Monday. The work would rely on Intel’s 18A process, an advanced chipmaking technology. Intel shares rose more than 8 percent in late trading after the
GLOBAL ECONOMY: Policymakers have a choice of a small 25 basis-point cut or a bold cut of 50 basis points, which would help the labor market, but might reignite inflation The US Federal Reserve is gearing up to announce its first interest rate cut in more than four years on Wednesday, with policymakers expected to debate how big a move to make less than two months before the US presidential election. Senior officials at the US central bank including Fed Chairman Jerome Powell have in recent weeks indicated that a rate cut is coming this month, as inflation eases toward the bank’s long-term target of two percent, and the labor market continues to cool. The Fed, which has a dual mandate from the US Congress to act independently to ensure