Anglo American reject a proposal offered by Xtrata Mining Group. Reasons for rejection merger proposal bid Xtrata Mining Group, Anglo fears of premium assets and their impact on the difficulty to increase market exposure to zinc.

Merger plan two largest mining companies in the world, will establish a world largest mining companies. Merger two mining companies is supported by financial institutions and banks, because the two companies will use the assets in the mineral exploration activities close together.

Xtrata Mining Group to provide responses to the rejection by the merger proposal. Following comment from the spokesman Xtrata Mining Group,

“disappointed by Anglo American’s rapid rejection of our proposal for an all-share merger of equals.” He added, “We are also surprised that the Anglo American board has not seen fit to engage with Xstrata to discuss our proposal.”

Response to the failure analyst merger the two mining companies :

the bleaker economic outlook might persuade Anglo to rethink a deal with Xstrata, which they said could be worthwhile for the potential savings from overlapping copper and coal assets.

Paul Cliff at Nomura, a financial services business, in London estimated that costs savings could reach $700 million. A merger would also give Xstrata access to Anglo’s platinum assets and help it diversify its operating profit, about half of which comes from thermal coal.

“Anglo could find itself in a situation where it could choose between several offers,” Johann Pretorius, an analyst at Nedgroup Securities in Johannesburg, said. He mentioned Brazil’s Companhia Vale do Rio Doce, the world’s largest producer of iron ore, and Aluminum Corporation of China among companies that could be interested. A spokeswoman for Vale do Rio Doce declined to comment on Monday.

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