HomeBase MetalsPossible China deal for Anglo

Possible China deal for Anglo

Rolling mill presses
ingot into strip at
Chinalco plant
London, England — MININGREVIEW.COM — 29 June 2009 – Global mining and natural resources giant Anglo American plc – one of the world’s largest mining companies – is building its defences against a £41 billion (R537 billion) merger approach from Xstrata by plotting talks about a major Chinese investment.

Reporting this possible development here, the Sunday Telegraph also said Anglo American had re-ignited plans to appoint Sir John Parker as chairman, and had made an attempt to recruit him in recent days.

The report said Anglo – which has rebuffed a proposal from Xstrata to consider a merger of equals – is to open talks with Aluminum Corporation of China (Chinalco) and an unidentified Middle Eastern investor about a partnership to inject hundreds of millions of dollars into MMX, its Brazilian iron ore business.

The Sunday Times reported that Jim Leng – who recently stepped down as chairman of Rio Tinto – had been put forward as a potential candidate to succeed Sir Mark Moody-Stuart, who has announced his intention to step down.

The newspaper also named Niall FitzGerald, deputy chairman of Thomson Reuters and Paul Anderson, a director at BHP Billiton as candidates.

Meanwhile The Observer reports that South Africa’s 317 000-member National Union of Mineworkers (NUM) has intervened in the proposed merger, saying it would lead to unacceptable job losses.

A spokesman for Anglo American declined to comment on possible investment in the Brazilian iron ore business, but said the process to appoint a new chairman was "progressing well".