Glencore concessions to China expected for Xstrata deal

Sun Apr 14, 2013 11:26am EDT
 
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* Decision from China's MOFCOM expected this week

* Agreement expected to include asset sales

* MOFCOM has only rarely required structural solutions, or sales

* Glencore has set May 2 date to complete deal

By Clara Ferreira-Marques

LONDON, April 14 (Reuters) - Trader Glencore is expected to agree to concessions this week to ease Chinese worries over its grip on the supply of copper, clearing the final regulatory hurdle in its $32 billion acquisition of miner Xstrata.

After months of negotiations, Glencore is expected to have agreed to yield some ground, with analysts and market sources pointing to a likely sale from among Xstrata's promising - though challenging - greenfield copper projects, which could include Las Bambas in Peru, due to begin production in 2015.

Industry sources said a solution might also involve giving China a guaranteed slice of the group's copper production.

Xstrata is already the world's fourth-largest producer of copper and aims to increase output by more than 50 percent from 2011 levels by 2015, as projects like the $5.2 billion Las Bambas mine ramp up.   Continued...