LONDON (ShareCast) - The proposed merger of London-listed mining company Xstrata (Other OTC: XSRAF - news) and Glencore moved a step for forward on Friday morning after South African power utility provider Eskom formally withdrew its intervention from the Competition Tribunal.
In a joint statement issued by Glencore International (Other OTC: GLCNF - news) and Eskom, the parties revealed that they had reached an agreement regarding Eskom's intervention in the merger proceedings before the Competition Tribunal relating to Glencore's acquisition of Xstrata Plc.
The companies stated: "The resolution achieved by the agreement establishes a framework within which Glencore and Eskom can cooperate with each other on a mutually beneficial basis and govern the interaction between them regarding existing and future coal supply agreements.
"In consequence of the agreement reached between the parties, Eskom has agreed to withdraw its intervention in the merger proceedings and that it no longer intends to participate further in the merger hearings."
The news came on the same day that Xstrata and Glencore published an update stating that the time frame for the proposed merger had been extended for a third time.