Ivan Glasenberg, the billionaire chief executive officer of Glencore International Plc (GLEN), may be nearing a long-sought takeover of Xstrata Plc as all sides signal a willingness to reach a deal that would be this year’s biggest merger, according to people familiar with the situation.
Xstrata is open to Glencore’s revised 22 billion-pound ($35 billion) offer, announced Sept. 10, and may soon recommend its support to shareholders, the people said. The proposal would force Xstrata CEO Mick Davis to depart within six months. Davis and Glasenberg are friends and rivals whose relationship dates to the 1970s, when they met in South Africa, their home country.
Qatar Holding LLC, the sovereign wealth fund that compelled commodities trader Glencore to increase its offer for Xstrata, is unlikely to intervene forcefully in any talks, and will rely substantially on the views of Xstrata’s board, two of the people said, asking not to be identified discussing a private matter. Qatar owns about 12 percent of the mining firm.
“It’s unlikely that Glencore would’ve announced the revised terms without the support of Qatar,” said Richard Knights, a London-based analyst at Liberum Capital Ltd. “We think Xstrata’s board is likely to support it.”
