In order to give both parties adequate time to prepare their defense on complaints raised by South Africa’s largest electricity provider, Eskom Holdings,  merger transactions between Swiss commodities trader Glencore International PLC (GLEN.LN) and mining company -Xstrata PLC have been postponed to January 18 by South Africa Competition Tribunal with subsequent dates for the transactions  sat for January, 21st – 23rd and January 28th.

South Africa’s power utility company, Eskom Holdings SOC Ltd., which provides about 90 percent of South Africa’s electricity through coal had expressed concerns that the merger could affect its coal supplies hence it wants conditions placed on the merged entity that would protect the supply of coal to its power stations.

The electricity provider had previously expressed concern that coal producers are dealing a high price and exporting too much. Xstrata is a major supplier of coal to Eskom.

As a result of this development, Glencore said its “long stop date” has now been moved a month – from December 31 to January 31.

The deal which has already received European Union and both companies shareholders’ backing is facing lengthy antitrust regulatory processes in South Africa and China.

If successful at the long run, the deal will usher in the $33 billion (£20 billion)  proposed acquisition Xstrata Plc and  would create the world’s fourth-largest diversified mining company with a market value of around $72 billion.

South Africa is the world’s seventh-largest coal producer.

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