An upcoming merger which was to take place between miner Xstrata and Switzerland-based commodities giant Glencore is now less likely due to the late demands of the Qatari sovereign wealth fund who happen to be vehemently opposing to the terms of the deal. Both conglomerates are currently listed in London. Qatar, which quietly worked its way up to second spot in the list of Xstrata’s shareholders and now, holds a collective stake of 10% in the company, placed its demands on Wednesday.
The successful takeover of Xstrata by Glencore might turn the company into the fourth largest miner globally. It has been billed as the “merger of equals” by industry observers and insiders alike. But the merger of Glencore and Xstrata has sent shockwaves in the mining industry. Early in the year, Glencore International reported it had entered talks with Xstrata for a possible $80 billion takeover merger.