Xstrata plc has begun a charm offensive to win over South African shareholders in Anglo American plc, including the government itself, that it initially offended with its June mining
"merger of equals" proposal (The Deal Pipeline, subscription only). It's already insisted that its $1 billion synergies estimate entails no South African job cuts, a crux issue for Pretoria, Anglo's 5% shareholder. Now it's offering investors the prospect of a continued listing in Johannesburg for the enlarged entity.
Thras Moraitis, Xstrata's general manager of strategy, tells
Bloomberg that a Johannesburg listing is under consideration. He also says the departure of Anglo's outgoing chairman Mark Moody-Stuart may be the catalyst for a thaw in the frosty relations between the two companies.
In that regard, South Africa is a pivotal player again, having reportedly prolonged Anglo's hunt for a new chairman by vetoing U.K. suggestions and pressing for the promotion of one of Anglo's black directors. If it has any interest at all in seeing its mining national champion subsumed into a larger entity, it may want to think again.
- Laura Board
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