Anglo American acknowledges preliminary proposal from Xstrata

By Lisa Kerner

Charlotte, N.C., June 22 - Anglo American plc said it received a preliminary proposal from Xstrata plc that may or may not result in a transaction.

According to Anglo American, it will make an additional announcement regarding the proposal "if and when appropriate."

Xstrata believes a merger of the two companies is "highly compelling."

"The combination would create a premier portfolio of operations diversified across multiple commodities and geographies, with enhanced scale and financial flexibility to fund future growth," an Xstrata news release said.

No other details about the proposal were provided.

London-based Anglo American is a mining group with operations in Africa, Europe, South and North America and Asia.

Based in Zug, Switzerland, Xstrata is a diversified mining group.

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