<strong>ALAIN WILLIAM </strong> SOCIETE GENERAL<br />A merger of Xstrata and Anglo American would make strategic sense. We don’t think the deal will raise competitive concerns. However, we believe the deal carries significant execution risk given potential political headwinds in South Africa, home to around 50 per cent of Anglo's assets.<br /><br /><strong>RONNIE CHOPRA </strong> FALCON SECURITIES<br />If the merger does not proceed, one of the larger mining companies such as Vale or BHP may pounce on Xstrata, whose shares are still 80 per cent off their peak of 2007. Cost synergies of £500m per year would make the enlarged entity a massive miner to compete against the likes of BHP Billiton.<br /><br /><strong>DAVID PLEMING </strong> MACQUARIE RESEARCH<br />Significant corporate, political and logistical challenges need to be overcome before this deal could happen and be complete. There are huge differences between the companies: Anglo has significant exposure to platinum and iron ore, while Xstrata is principally focused on the coal, nickel and copper segments.