The European Commission has been notified of the proposed $90 billion tie-up between trader Glencore
EU competition authorities have in the past considered the two sides as a single entity, as Glencore already owns over 34 percent of Xstrata - enough to exercise control from a competition perspective and therefore enough to avoid a full merger probe. But lawyers and industry sources had said it was unlikely the commission would choose not to look into the largest mining takeover deal to date.
The parties expect the merger between Glencore and Xstrata not to result in any negative impact on competition in the commodity markets in which the two companies operate, the two sides said in a statement.
In fact, the merged firm is expected to be able to offer customers a wider range of products and services and provide improved security of supply to satisfy customer demand.
(Reporting by Clara Ferreira-Marques; Editing by Mike Nesbit)