Bloomberg reported that the European steel industry lobby group EUROFER has opposes proposed USD 39 billion merger between Xstrata Plc and Anglo American Plc because of the companies’ control over coking coal supplies.
Mr Gordon Moffat director general of EUROFER said that “We would be concerned about the concentration of four main suppliers becoming three. We are looking at our options and would raise our concerns with the European Commission.”
The deal would create a rival to the BHP Billiton Mitsubishi Alliance, the largest supplier of the raw material. Anglo is the second-biggest producer after BMA and Xstrata is the fourth largest producer after Rio Tinto Group.
