Sail on by. Xstrata, which had proposed a nil-premium merger of equals with Anglo American, has retreated from a formal bid. Anglo’s unwillingness to talk to Mick Davis, Xstrata’s chief executive, and the latter’s distaste for hostile takeovers made such an outcome inevitable. Never mind. Instead, he can watch Anglo prove its standalone case, its share price no longer supported by Xstrata. How should the two miners spend the interim?

Xstrata now knows that Anglo investors want a premium. Offering one might have secured a deal. But given the lengthy regulatory approval process, Xstrata risked bidding against itself. Mr Davis could still have the last laugh if Xstrata’s share price and earnings momentum keep tilting the initial 50:50 merger ratio in its favour.