Swiss mining giant Xstrata seeks ‘merger of equals’ with rival Anglo-American

Miner Xstrata seeks merger with Anglo American

ZUG, Switzerland — Swiss mining giant Xstrata PLC said Sunday it is seeking a merger with rival Anglo American PLC.

Xstrata said it “recently sent a written proposal to the board of Anglo American seeking their consideration of a merger of equals of the two companies.”

“A merger of these two world-class companies with complementary assets is highly compelling,” the company said in a statement posted on its Web site, adding that substantial cost savings could result if the deal proceeds.

Mining companies have been hit by a slump in demand in recent months.

Xstrata last year failed in a bid to take over another rival, Lonmin PLC.