Clifford Chance

Implications of China's conditional competition approval of Glencore/Xstrata

24 April 2013

On 16 April 2013, the Ministry of Commerce of the People's Republic of China (MOFCOM) gave conditional approval to the US$30 billion takeover of Xstrata plc by Glencore International plc.  Both behavioural and structural remedies were imposed, including the divestiture of an overseas asset by Glencore.  MOFCOM granted its conditional approval more than a year after the transaction was first notified.  The Glencore/Xstrata decision reflects an increased level of detail, including the nature of the divestiture and supply terms required by MOFCOM as merger remedies and may provide useful insight into how it will review complex mergers in the future.

Download PDF