Swiss-based miner Xstrata has dropped its proposed merger with Anglo American.
Xstrata dropped the merger five days before the deadline set by UK takeover authorities to make a formal offer, following previous rejections by Anglo whose board said the terms did not recognise the value Anglo had as an individual company.
Xstrata chief executive Mick Davis said it is “regrettable” Anglo American rejected the all-share merger he proposed in June, which he argued would have created a powerful new group to compete in the global mining business.
He further added that the merger would have eventually delivered more than $1bn of synergies per year for the combined company through company synergies and reach.
Xstrata said that it reserves the right to make another move later for a merger, and that it will continue on its own business operations for now.