A South African court has approved Glencore’s $33 billion takeover of Xstrata with limitations on worker layoffs. The country’s Competition Tribunal mandated layoffs not exceed 60 skilled workers, while downsizing of unskilled or semi-skilled positions be limited to 100—no less than two years after the merger.
The deal is also pending Chinese regulatory approval and Xstrata’s European Commission commitments. The court’s approval prevailed following Glencore’s negotiations power utility Eskom over fossil fuel supplies. In relying on coal-fired plants to generate 85% of power to Africa’s biggest economy, Eskom sought to ensure unhindered competitive coal access.
