China stainless steel mogul fights to avoid a second collapse
A debt crisis is threatening the future of one of the world’s top stainless steel producers, Jiangsu Delong Nickel Industry.
Diversified miner Xstrata (LON:XTA) and commodities trader Glencore International (LON:GLEN) have now until October 1 to decided on the $36 billion lauded merger.
“The extension was requested to enable Xstrata’s independent non-executive directors to take full account of feedback from consultation with key Xstrata shareholders,” the Swiss mining company said in a statement on Friday.
Glencore, Xstrata’s largest shareholder, increased its offer for the company earlier in September in a last-minute attempt to savage the deal after the miner’s second-biggest investor Qatar Holding demanded improved terms in June.
The deal, announced at the beginning of February as a “merger of equals,” has turned into something more resembling a hostile takeover, since Xstrata’s board launched a vigourous defence of the miner, the world’s number one thermal coal exporter and top 5 copper producer, two weeks ago.
With revenues in excess of $200 billion Glenstrata, as it has been dubbed, would become the 4th largest miner on the planet with Xstrata’s current management responsible for over 80% of the combined group’s earnings, 150 mining and metallurgical assets and 20 major growth projects.
