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Published
Jun 24, 2009
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Xstrata pushes for merger with Anglo American

By
AFP
Published
Jun 24, 2009

GENEVA (AFP) — Swiss mining group Xstrata said Wednesday 24 June it would continue to try to convince rival Anglo American of the advantages of a merger between the two.


Photo: AFP/File/Fabrice Coffrini

"It is well recognised that the combination of Xstrata and Anglo American is a natural fit and the most compelling major transaction available in our industry," Xstrata chief executive Mick Davis said in a statement.

London-based Anglo American, a British-South African enterprise, on Monday 22 June rejected the merger proposal, dismissing it as "totally unacceptable."

But Davis maintained Wednesday 24 June that Xstrata remains "convinced of the undeniable logic for a merger of equals."

"We will continue to seek to engage with Anglo American's board and management to investigate the value that would accrue to their shareholders and ours from a combination."

A merger would create a company worth more than another mining giant, Rio Tinto, which earlier this month cancelled a controversial tie-up with China's Chinalco in favour of a joint venture with the world's biggest miner BHP Billiton.

Anglo American has a market worth of 35 billion dollars (25 billion euros) and Xstrata 33 billion dollars.

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