Indian mining billionaire Anil Agarwal's surprise announcement last week of his plans to increase his stake in Anglo American makes it hard not to consider the idea of a possible merger between the mining house and Vedanta Resources. It is clear to the market that this is not a personal investment based on his feelings about the company and its performance in the past year, but a strategic move for a bigger plan that he has not shared as yet. For years before its takeover by Brazilian brewer AB InBev, its South Africa-founded rival SABMiller was spoken of as a takeover target. The absence of a controlling shareholder to ward off an interested suitor was a chink in its armour. Anglo sits in a similarly vulnerable position. Anglo has been in existence for a century and Vedanta has only been listed on the London Stock Exchange for 13 years. Vedanta is on the lookout for growth opportunities, and Anglo is in the throes of a restructuring drive that involves asset sales. Those who have w...
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