Anglo American (LON:AAL) was the biggest riser on the FTSE 100 on Wednesday morning, after reports that Vedanta is planning to acquire Anglo American’s South African business.

Founder Anil Agarwal is reported to be considering merging Vedanta Resources with the South African unit via a share swap, according to two people involved in the plan.

The merger would create a company valued at around $7 billion and give Vedanta Resource’s family trust company, Volcan Investments, control of the merged company. Agarwal already owns a 19.35 percent stake in parent Anglo American through Volcan.

Anglo American South African businesses include Anglo American Platinum Ltd, Coal SA, De Beers Consolidated Mines and Kumba Iron Ore Ltd, worth around $12 billion altogether.

Shares in Anglo American are soaring on the speculation, and are currently up 3.72 percent at 1,700.80 (1056GMT).