Anglo American CEO Says Glencore-Xstrata Merger Won't Affect Anglo
February 17 2012 - 4:45AM
Dow Jones News
The chief executive of globally diversified miner Anglo American
PLC (AAL.LN) said Friday that the proposed merger of mining titans
Glencore International PLC (GLEN.LN) and Xstrata PLC (XTA.LN) won't
affect its business.
"I don't think it's going to change anything," said Cynthia
Carroll in a conference call with journalists. "We have the scale
and we have the breadth of commodities" with a strong focus on
growing tier one assets, she added.
The company has a $98 billion organic growth pipeline of 85
approved and unapproved projects and expects to expand its
production base 35% by 2014, and 50% once the purchase of an
increased stake in diamond producer De Beers is taken into account,
Carroll told journalists in a call, and then later on TV
broadcaster CNBC Europe.
The De Beers transaction has yet to close.
The Glencore-Xstrata merger "doesn't change anything from a
competitive standpoint," she said, adding that she wouldn't
speculate on whether Glencore and Xstrata might make a takeover
approach on Anglo American.
Bankers and industry executives have said that the proposed
merger of equals between Glencore and Xstrata could create a
company with enough financial muscle to go after Anglo
American.
Xstrata already proposed a merger of equals in 2009 that Anglo
American rejected.
-By Alex MacDonald, Dow Jones Newswires; +44 (0)20 7842 9328;
alex.macdonald@dowjones.com
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