Xstrata drops bid for Anglo American
Outside chance exists for a renewed takeover offer
Tom Stundza -- Purchasing, 10/16/2009 3:01:41 PM
Xstrata has dropped a proposed $48 billion offer to merge with Anglo American and create one of the world's largest mining companies. Bloomberg News says the pullout occurred just days before a deadline for the Zug, Switzerland-based firm had to make a formal bid for the London-based rival or walk away.
Xstrata put in a bid for Anglo American in June, which would have created the world's third-largest mining group with vast holdings in iron ore, nonferrous and platinum group metals and diamonds. Anglo American rejected the proposal that would have combined mining operations in the U.S., Canada, Europe, Australia and Oceania, South America, Southeast Asia and South Africa.
The Independent newspaper in London suggests that Xstrata's decision to give up on the merger may only be temporary, however. The Swiss group has maintained that its wooing of Anglo American investor groups could take as long as three years and several industry analysts have argued that a renewed tilt at Anglo American still remains an option for Xstrata.
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