Qatar Holding has confirmed it will not support Glencore’s proposed takeover of mining firm Xstrata, effectively scuttling the multi-billion dollar deal.

In a statement, Qatar Holding again expressed long-held reservations about the world’s largest commodity company’s proposed merger terms.

“Although [Qatar Holding] continues to support the principle of a combination of Glencore with Xstrata, it has determined that it will not support the proposed merger terms of 2.8 new Glencore shares for every one existing Xstrata share,” the statement read. “Accordingly, QH will vote its entire shareholding in Xstrata against the proposed scheme and merger terms at the Scheme Meeting and Extraordinary General Meeting of Xstrata to be held on 7th September.”

Glencore currently holds a 34 per cent stake in Xstrata, but is denied voting rights at the general meeting due to its takeover bid.

UAE-based Aabar Investments is the largest investor in Glencore.