Friday, September 03, 2010
Latest Procurement News
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KNOWLEDGE MANAGEMENT TAGS
"Governance", "Leadership"
Procurement concerns core to mining deal
The merger of two of the world's largest mining groups, Xstrata and Anglo American, may struggle to get approval because of concerns over the level of possible synergies the combination would provide.
While Xstrata initially estimated that the merger would allow synergies of some $1bn, investors were concerned by market reports had suggested that $3bn would be possible - much of which is already underway at Anglo American, where CEO Cynthia Carroll has already outlined a $2bn savings programme split equally between a centralised coordination of procurement expenses and an asset optimisation programme, reports the Financial Times.
"Although there is a range of estimates in the market by analysts and others, this estimate is the only one that has been reported on by Ernst & Young and our financial advisers and is the only estimate endorsed by Xstrata," the company said in a statement.
Anglo American continues to oppose the potential deal.
Procurement Tags - Anglo American, Governance, Leadership
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