South Africa's Department of Minerals and Energy will continue to engage with Anglo American and Xstrata on Xstrata’s proposed merger and would ultimately make a decision “in the best interests of the country”, according to spokesman Jeremy Michaels.
Minerals and energy director- general Sandile Nogxina held separate meetings with Anglo American CEO Cynthia Carroll and representatives of Xstrata yesterday after Xstrata last week proposed a “merger of equals” with Anglo American.
Anglo American has rejected the proposal and trades unions and government representatives have expressed fears about the effect such a merger would have on jobs and competition.
Xstrata emphasised it did not envisage making cost savings through retrenchments in SA.
Locally, Xstrata has coal, ferrochrome and platinum interests while Anglo American is prominent in platinum, coal, iron- ore and diamonds.
Outside SA, the two companies also cross-over in copper, nickel and zinc.
Michaels said Anglo and Xstrata had provided some details about the proposed merger but the department required more information before it could make a decision.
Anglo American and Xstrata declined to comment on their meetings with the department.
Source: Business Day
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