Companies: AAL    CS.   

Old timers are still rubbing their eyes in disbelief at the appointment of Cynthia Carroll to become chief executive officer of South African mining colossus Anglo American. No-one doubts the skill and vigour of the lady who will move from Alcan Primary Metals Group in the New Year to take over Tony Traher’s seat at Anglo, but in a conservative, macho industry such a development, however welcome, takes some digesting.

Elsewhere, Anglo-Dutch steel giant Corus has accepted a £4.3 billion takeover offer from India’s Tata Steel, a move representing the largest Indian takeover of a foreign company and, if approved by the shareholders of FTSE 100 listed Corus, one that would create the world’s fifth largest steel firm.

Corus employs more than 47,000 people worldwide, including 24,000 in UK plants at Port Talbot, Scunthorpe and Rotherham and is trading at around 467.5p, whilst the offer is being pitched lower at 455p. Corus chairman Jim Leng claimed the deal marked the culmination of talks with firms as far afield as Brazil, Russia and India, and said combining with Tata, for Corus shareholders and employees alike, was a case of ‘right partner at the right time at the right price and on the right terms’.

In 2005, Tata Steel was the world’s 56th biggest steel producer – Corus was ninth, whilst Mittal Steel and Arcelor were one and two respectively – and its move for Corus represents its first expansion outside of Asia.

In the metal markets, bullion dealers have been watching the travails of the US dollar with some glee, as gold hit a seven-week high at one point. Many base metals have been lacklustre, though lead has proved an exception, testing all-time peaks.

A reported tightening in the US oil market and falling US inventories have not, as yet, stopped crude futures slipping. By contrast, fears of a poor US harvest have sent corn prices to 10-year highs and helped fuel rallies in soyabean and wheat futures on the Chicago market.