Xstrata, the Anglo-Swiss mining company, has killed a plan by US rival Phelps Dodge to create a C$41bn (€28.5bn) three-way mining merger, after taking control of Canadian group Falconbridge, one of Phelps' targets, today.

Xstrata said in a statement this morning it had paid C$16.1bn to secure 67.8% of the outstanding shares in Falconbridge, boosting its holding to just over 92%.