This week, the commodity trader Glencore will try to settle its $30 billion takeover of Xstrata. However, the miner’s board could show cold-shoulder to the deal if investors try to settle a controversial pay scheme for its managers.
Today’s daily digit is $30 billion. Glencore will pay this amount to take over Xstrata. On Tuesday, the shareholders of the two companies will cast their votes on the takeover, one of the biggest ever acquisitions in this sector. The possibility of the deal is really bright now after nine months of squabbling between Xstrata and its shareholders over the takeover.
However, Mike Ingram, the market commentator at BGC, said that the challenges were not yet over. He said that the real issue would be the influence of the mega merger in the economy of the coming 3-5 years.
The prospect of the deal got movement when Xstrata’s second largest investor Qatar backed the takeover proposal.