LONDON â€" The commodities trader Glencore International has offered concessions to European anti-trust authorities to win support for its $33 billion proposed takeover of the mining company Xstrata.
In response, the European Union pushed back its deadline to greenlight the deal by two weeks to Nov. 22. The deal would create one of the world's largest diversified mining and trading companies.
The announcements come as Glencore and Xstrata continue to seek shareholder approval after many investors balked at the initial offer of 2.8 shares in Glencore for every share in Xstrata. Last month, the commodities trader raised its offer to 3.05 shares to one, though demanded that as part of the revised deal, Glencore's chief executive, Ivan Glasenberg, should take over as head of the combined group earlier than had been expected.
Xstrata's shareholders, including the Middle Eastern sovereign wealth fund Qatar Holding, will meet on Nov. 20 to decide whether to appr ove deal. To reach a deal, 75 percent of Xstrata's eligible shareholders must support the multi-billion dollar deal. Glencore, which owns a 34 percent stake in the mining company, will not be permitted to vote.
Neither Glencore nor the European Union gave details on the concessions that the commodities trader had offered to win anti-trust backing for the deal. Potential disposals may include parts of its zinc metals operations, according to Reuters.
The proposed acquisition has been hampered by several shareholder revolts.
Part of the anger has focused on bonuses that Glencore and Xstrata had been negotiating to retain top executives. The payouts could be worth more than $200 million.
Some institutional investors, including BlackRock and Legal and General, have opposed the payments because they are seen as too extravagant. The opposition prompted Xstrata to revise the bonus packages to link them more closely to performance targets, though they remain of a similar combined value.
