Even all-share Xstrata-Anglo merger may be credit negative – Fitch

Even a wholly share-based merger of diversified miners Xstrata and Anglo American may be credit negative, credit agency Fitch Ratings said on Monday.

Fitch said that, even though a potential combination of the two companies would offer a variety of business benefits stemming from increased commodity and geographical diversification out of government-and-labour charged South Africa in particular, the combination of the two companies might not result in positive rating action.

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