Glencore International’s $30 billion takeover of mining giant Xstrata has been approved by shareholders, but a multi-million dollar bonus package for executives has been voted down.
The merger will create the world’s largest commodities trader, and analysts say the company could pursue aggressive takeovers of smaller miners in the future.
In response to shareholders voting down a $200 million bonus package for executives, Xstrata chairman John Bond, who was in line to be chairman of the new company, has resigned.
Xstrata said the bonus package was vital for securing staff that were an essential part of running its mining assets, but many prominent investors, including Knight Vinke, voted against it.
“We, as major shareholders in Xstrata, have no confidence in the independence and robustness of the Xstrata boad,” David Trenchard, Knight Vinke vice chairman told the New York Times.
At several points over the last nine months the merger came close to collapse, and to win investor support Glencore was forced to raise it’s all-share offer for Xstrata by nine per cent.
Xstrata CEO Mick Davis will become CEO of Glencore Xstrata for six months before handing over to Glencore CEO Ivan Glasenberg.