SABC News - Eskom withdraws objection of Glencore takeover :Friday 18 January 2013

Eskom withdraws objection of Glencore takeover

Friday 18 January 2013 14:12

SABC

Eskom relies on coal-fired plants to generate 85% of the electricity that powers Africa's biggest economy(SABC)

Eskom has withdrawn its objections to the takeover of miner Xstrata by commodities trader Glencore.  This removes a potential hurdle to the R250 billion deal.  The power utility says it has agreed with Glencore on a framework for their discussions on coal supply.
 
Eskom initially asked South Africa's competition regulator to impose conditions on the Glencore to ensure its coal supplies were not at risk. The company relies on coal-fired plants to generate 85% of the electricity that powers Africa's biggest economy and has been keen to ensure the merger does not impede its ability to obtain sufficient and competitively priced coal.

Xstrata is one of South Africa's biggest coal producers and a key supplier of the fuel to Eskom.  The utility says the merged entity will be supplying 15% of Eskom's coal and will also be among the largest traders in the coal market.
 

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