Chairman choice sees Xstrata loosen tie

Vodafone’s Mr Bond will replace Willy Strothotte in May, severing one of Xstrata’s clearest ties with its biggest shareholder and potential buyer Glencore, which is mulling a possible stock market listing this year.

Mr Strothotte, who has chaired Xstrata since 1994 and led it through its initial public offering nine years ago, doubles up as chairman of Glencore, the world’s largest commodities tra- der.

Xstrata said the prospect of a Glencore IPO had prompted it to begin a search for his replacement last autumn

“Given this tenure and the board’s view that, if Glencore seeks a public listing, it would not be appropriate for the two companies to have the same chairman,” Xstrata said.

An IPO could value Glencore at about $60bn, fuelling speculation that it is a first step towards a merger between Xstrata and Glencore.

Xstrata investors have been wary of a link-up ahead of an IPO due to difficulties valuing Glencore’s diverse business.

If Glencore does pursue a deal with Xstrata, having Mr Bond on board should help reassure investors worried about the close historic ties between the two companies.

But it could also cut short Mr Bond’s tenure, as there has been speculation that a combined group would ultimately be chaired by Xstrata chief executive Mick Davis.