London, England — MININGREVIEW.COM — 21 July, 2009 – Incoming chairman of mining giant Anglo American Plc “’ John Parker “’ who takes up his new position next month “’ says the proposed merger of equals rival mining company Swiss-based Xstrata Plc has a clear value gap and is what he described as “a great distraction” to management.
“What looks good on a spreadsheet has also got to be examined in the light of cultural differences and management philosophy,” Parker said in an interview broadcast on the Cantos Web site. He will succeed Mark Moody-Stuart on 1 August as chairman of London-based Anglo.
The company rejected Xstrata’s proposed “merger of equals” last month, and Xstrata said it would continue to seek talks with Anglo.
Xstrata said a merger could deliver US$1 billion (R8 billion) in cost synergies, but Anglo has pointed to its own plans to reduce costs by US$2-billion (R16 billion) by 2011.