Xstrata has proposed to merge with British miner Anglo American.
Xstrata recently sent a written proposal to the board of Anglo American seeking their consideration of a merger of equals of the two multi-billion dollar companies.
The Swiss-based company stated in a release they believe a merger with complementary assets is highly compelling, saying the combination would create a premier portfolio of operations diversified across multiple commodities and geographies, with enhanced scale and financial flexibility to fund future growth.
A merger would allow the new company to increase operations. Xstrata stated the optimization and reprioritization of the combined company’s organic growth pipelines would significantly enhance shareholder returns.
Xstrata took over Falconbridge Ltd. in 2006 and has operations in Sudbury and Timmins.
Both companies stated there is no assurance any transaction will be forthcoming from the proposal.
