Xstrata carries on with merger attempts

Xstrata is still pushing for a merger with its rival Anglo American.

Mining group Xstrata has said it intends to put more pressure on rival company Anglo American to agree to a merger.

The Swedish company insists the two firms are a natural fit and a tie-up would result in significant savings for both parties.

Anglo-American rejected the idea of a merger earlier this week, claiming the proposal was "totally unacceptable".

Xstrata wants it to reconsider, insisting that a merger of equals is a logical step.

Its chief executive Mick Davis said there are "quantified substantial synergies" between the firms.

He said he found Anglo America's rejection of the merger just days after receiving the group's approach "regrettable".

"We remain convinced of the undeniable logic for a merger of equals between Anglo American and Xstrata," he stated.

And he added: "We will continue to seek to engage with Anglo American's board and management to investigate the value that would accrue to their shareholders and to ours from a combination."

Mr Davis said he feels "sure" that Anglo American will want to examine the merits of the transaction comprehensively in time.

According to AFP, if commercial agreements are reached between the two mining groups, the merger could create a company worth more than rival Rio Tinto.

Xstrata is listed on the London and Swiss stock exchanges and claims to be the world's largest producer of expert thermal coal. It also produced ferrochrome, metallurgical coal, copper, nickel and zinc.

Anglo American's core commodities are platinum group metals and diamonds, copper, nickel, zinc and phosphates, as well as ferrous metals coal.