Anglo American plc (LON:AAL) shares are surging about 9 percent following the reports that Vedanta Resources plc (LON:VED) owner, Anil Agarwal, might be picking up a stake of maximum of 13 percent. Interestingly, he has reportedly sent feelers for a possible merger last year. The Indian mining billionaire would be investing about $2.4 billion making him the second biggest shareholder of the company.
However, he is reported to have stated that Agarwal is not planning to take control of Anglo American. The mining group businessman termed the investment as a family investment and that he will not make a bid to take over it.
A century ago, the company was established by Oppenheimer dynasty in South Africa. Currently, this is one of the top five mining groups in the international arena. Its assets included iron ore operations in South Africa and Brazil, copper mines in Chile, and De Beers, which is regarded as an iconic diamond producer.
Following the news, other stocks in the same sector also jumped. The following are the stocks that gained:
- BHP Billiton plc (LON:BLT) climbed 5.98 percent
- Rio Tinto plc (LON:RIO) gained 5.44 percent
- Vedanta Resources plc (LON:VED) surged 6.95 percent
- KAZ Minerals PLC (LON:KAZ) jumped 9.75 percent
- Glencore PLC (LON:GLEN) advanced 5.04 percent