Indian billionaire Agarwal goes after 12% of Anglo American

Indian billionaire Anil Agarwal is trying to buy as much as 12% of Anglo American (LON:AAL), one of the main rivals to the tycoon’s Vedanta Resources (LON:VED), though he said he didn’t intend to take control of the diversified miner.

Deal makes of Volcan Investments Ltd., Agarwal's family trust, the second-largest investor in Anglo American.

The deal would make of Volcan Investments Ltd., Agarwal's family trust, the second-largest investor in Anglo American behind Public Investment Corp., South Africa's state-run pension fund.

It could also give Vedanta’s founder and chairman a commanding voice at Anglo American, the world's fifth-largest miner by market value, which Agarwal described in a statement as “a great company with excellent assets and a strong board and management team who are executing a focused strategy.”

This is not the first time the businessman tries to grab a stake in Anglo. Last year, he approached the London-listed company with an offer to merge with Hindustan Zinc, a mining firm he controls through Vedanta, India’s largest miner. But Anglo stopped the approach in its tracks saying a deal didn’t make sense and wasn’t feasible.

The investment is a major vote of confidence in Anglo American, which has staged an impressive turnaround since commodity prices began climbing last year. Last month, the firm logged a profit of $1.6 billion for 2016, its first annual revenue in five years.

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