Xstrata Withdraws Anglo American Proposal

“Nonetheless, the compelling strategic rationale for a merger of the two companies remains undiminished and has been recognised by shareholders of both companies. As previously announced, a merger would deliver over US$1 billion of quantified pre-tax synergies per annum by the third full year following completion1, together with superior competitive positioning, scale and diversity. Cost savings measures by either company alone, while commendable, simply cannot realise this value, nor deliver the associated strategic benefits.

“Our decision not to proceed with an offer before the deadline imposed by the UK Takeover Panel reflects our disciplined approach to growth and our focus on the value proposition for Xstrata’s shareholders in a merger. We continue to assess a range of alternative growth options, in full recognition that transactions of this nature often take time and patience to mature.

Anglo American Chairman, Sir John Parker, said: “The Board continues to have full confidence in the value inherent within the Group’s unique asset base and the additional value that we can drive from it. I look forward to working with the management team to deliver this value for our shareholders.”