King & Wood Mallesons has advised Glencore International and Xstrata on the Australian aspects of their all-share merger. Upon completion, the merger will be the largest of its kind in the mining industry to date and the largest M&A deal (in money terms) worldwide this year, worth an estimated $61.9 billion.
Under the deal, Glencore, the world’s largest commodities trading company, will acquire all of the remaining 65 percent shareholding in Xstrata which it does not currently own. Glencore will offer 2.8 new shares to each shareholder in Xstrata, representing a 15.2 percent premium to Xstrata shareholders. The new entity, to be called Glencore Xstrata, will be one of the world’s largest diversified mining houses and have a combined market capitalisation of $90 billion spanning mining, agriculture and trading.
King & Wood Mallesons acted for both parties on the merger by agreement of both parties. The transaction involved negotiations with deal teams across the world to secure approval from a number of regulatory bodies including, in Australia, the Foreign Investments Review Board and the Australian Competition and Consumer Commission.
The King & Wood Mallesons team was led by M&A partner Nicholas Pappas, who has worked extensively with Xstrata and Glencore in the past. He was assisted by partners Wayne Leach, Andrew Gray and Frank Brody along with special counsel Malcolm Brennan.
The other firms which acted on the deal were Freshfields (international counsel for Xstrata) and Linklaters (international counsel for Glencore).
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