Is GlenStrata merger just the start?

Although many thought the era of the big mining mergers was over, some believe newly-formed GlenStrata could have its sights on Anglo-American.

Investors and analysts have suggested the $90bn merger deal between Glencore and Xstrata could lead to a further shake-up among London-listed miners. Both Jane Coffey, head of equities at Royal London Asset Management and Nik Stanojevic, mining analyst at Brewin Dolphin, forecast further M&A to come, suggesting the newly-formed ‘Glenstrata’ could again look at rival Anglo-American. Anglo rejected a £41bn merger offer from Xstrata in June 2009, when valuations on miners were significantly lower. However, the managers say if the current Glenstrata deal goes through it could spark more M...