Anglo synergies: hidden value

Anglo American should be careful not to convince itself there would be no value in a deal with Xstrata. Its Swiss domiciled mining rival claims combining the two could yield pre-tax synergies of “at least $1bn” per annum. That could be conservative. Xstrata has identified three categories of synergies, each of which has been verified by Ernst & Young. Over $458m of operational savings are to come from Anglo and Xstrata’s coal and copper units in Australia, South Africa and Chile; a further $237 ...