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Xstrata plc Chief Executive Officer Mick Davis has agreed with Glencore International plc to not take up the six month role of Chief Executive Officer and Executive Director of Glencore Xstrata plc (“Glencore Xstrata” or “the Combined Group”) following completion of the merger.
Consequently Mr Davis will step down from Xstrata plc upon completion of the merger, currently expected to be 2 May 2013, allowing Glencore CEO Ivan Glasenberg to assume the role of Chief Executive Officer of the Combined Group from the effective date.
Mr Davis has agreed to act as consultant to the Combined Group until 30 June 2013 in order to support the integration process. Pursuant to the terms of the Merger, Mr Davis’s position on the Glencore Xstrata Board will be taken by a current Xstrata executive from the effective date.
A number of other Xstrata plc Executive Committee members have indicated their intention to step down from their roles on the effective date. As previously announced, Xstrata’s Chief Financial Officer Trevor Reid has decided not to take up the position of Chief Financial Officer of Glencore Xstrata plc upon completion of the merger.
Xstrata Copper Chief Executive Charlie Sartain, Xstrata Nickel Chief Executive Ian Pearce, and Loutjie Smit, Interim Chief Executive of Xstrata Alloys, will leave the company on the effective date.
Executive General Manager, Strategy and Corporate Affairs Thras Moraitis, and Chief Legal Counsel Benny Levene will also step down on the effective date but, along with Trevor Reid, have agreed to act as consultants to the Combined Group for a period of up to six months following the effective date in order to support the integration of their respective functions.
Commenting on the news Xstrata plc Chairman Sir John Bond said that the team led by Mick Davis “built a business that embedded an entrepreneurial spirit within a committed but lean management team, combined with a clear sense of purpose and dedication to sustainability, to deliver value in its broadest sense to the many stakeholders in our business.
“As Xstrata transitions into the merged company with Glencore, Mick and his team can look back with pride on a decade of exceptional achievement. They leave Xstrata with the warmest appreciation of the Board for their outstanding accomplishments” said Sir John.
Mick Davis said that he would look back on his “eleven years at Xstrata with enormous satisfaction” and that he “had the great pleasure and privilege of working with a talented and committed group of leaders”.
“Together we were able to build a 2 | Xstrata plc $50 billion global company from a $500 million minnow, delivering significant returns to our shareholders in the process. At the same time we created a unique culture that empowered individuals to perform and identify opportunities to create value, while making a positive and lasting contribution to the communities and countries in which we work”.
As referred to in the merger update announcement released by Glencore today, following receipt of approval in China and Glencore having now given effect to the commitments required by the European Commission, completion of the Merger is now only conditional upon completion of the Xstrata court process as further set out in the New Scheme Document in connection with the Merger published by Xstrata on 25 October 2012.
The expected timetable in connection with the Merger is as set out in Glencore’s merger update announcement
