Mining Weekly reports that sources in the Xstrata mining group have stated that it will probably abandon its takeover bid for its mining rival Anglo American.According to one of the mining company’s investors, Xstrata believes that with the appointment of a new Anglo chairman, the company will lack support to place the necessary pressure and it is not interested in conducting a hostile takeover.

On October 2, British regulators issued a ruling according to which Xstrata is required to make a formal takeover offer by October 20 or else withdraw the offer until April.

The amalgamation of Xstrata and Anglo American would create the world's largest producer of zinc, platinum, coal for power stations and ferrochrome.

Anglo American called Xstrata’s merger bid "totally unacceptable" the day after Xstrata made the offer in June.