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SA says Anglo merger is unacceptable

South African
mining minister
Susan Shabangu
 
Cape Town, South Africa — MININGREVIEW.COM — 23 June 2009 – The South African mining minister says the government is opposed to a possible merger between Xstrata – the fifth largest diversified metals and mining company in the world – and rival global mining and natural resources giant Anglo American plc – one of the world’s largest mining companies – terming such a potential move as “unacceptable”.

Addressing reporters here, Minister Susan Shabangu said: “that is unhealthy. It is uncompetitive, and in terms of the global standards and principles it is just unacceptable. Definitely monopolies cannot be promoted in South Africa,” she added.

Anglo rejected Xstrata’s so-called “merger of equals” proposal yesterday, knocking a no-premium marriage and a combination with what it regards as Xstrata’s inferior mines.

The snub came a day after Xstrata had unveiled its plan, and after top Anglo shareholders had pressed for a big premium to create a giant to compete in a consolidating mining sector.

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