RICHARD CURR PRIME CFDS
Xstrata can find better deals than Anglo, so it’s no surprise it has walked away. The Anglo that Xstrata was looking at a year ago looks somewhat different. We suspect Xstrata might go for some low hanging fruit, as in Lonmin or First Quantum, but we wouldn’t rule out another approach for Anglo next year.
HENK POTTS BARCLAYS WEALTH
A combination would have made a lot of sense, but from a strategic point of view, we believe Xstrata’s withdrawal shows that management is disciplined and did not make the mistake of starting an expensive and lengthy hostile process. Now that Anglo is off the agenda, other value-creating acquisitions could be on the cards.
IVOR PETHER ROYAL LONDON ASSET MANAGEMENT
Xstrata will keep a close eye on Anglo, particularly its actions under its new chairman. It will now go back to focusing on its business and maximising its returns. Anglo, meanwhile, will have to sort out its refinancings. It has some really big growth projects to focus on, so will be able to concentrate on that.