23 Jun 2009

Anglo American rejects merger bid by Xstrata

3:25 pm on 23 June 2009

London-based mining group Anglo American has rejected a merger bid by Xstrata, calling the terms of the proposed deal totally unacceptable.

Anglo says the proposals - which would have created a group worth more than Stg 40 billion, lacked strategic merit.

Xstrata says it believes a merger would significantly enhance shareholder returns.

A merger would help the companies compete against Rio Tinto and BHP Billiton, which agreed a joint venture recently.

That deal was struck after Rio scrapped a planned link with Chinalco, a state-controlled Chinese company.