Xstrata, Anglo-American in Merger Talks

(Update: Adds detail from analyst commentary on a potential Xstrata-Anglo-American pairing.)

Mega-dealmaking in the mining industry has intensified again.

First, the Aussie duo of BHP Billiton(BHP Quote) and Rio Tinto(RTP Quote) formed their iron-ore joint venture in Western Australia (which comes a couple years after the pair's failed attempt to combine, a deal shredded by the credit-market collapse).

Now comes Xstrata, a Swiss concern that mostly mines copper, zinc, nickel and coal, making a play for cross-Europe rival, Anglo-American(AAUK Quote) -- a move that had been rumored for days and that comes a year after Xstrata failed in its hostile bid for Lonmin(LNMIY Quote), a South African platinum miner. ...