Mining giant Xstrata today confirmed that its all cash offer for Canadian miner Falconbridge has received clearance from the Canadian competition authorities.

It received an Advance Ruling Certificate from the Canadian Competition Bureau, said the group, leaving it free to proceed with its offer with no further anti-trust review in Canada.

In May, Xstrata launched a fully underwritten hostile all-cash offer worth C$52.50 per share to buy the 80% rump of the Canadian copper and nickel group.

Falconbridge has already accepted a takeover deal with fellow Canadian outfit Inco, but the pair are still trying to win approval for the deal in the US and Europe as authorities raise competition concerns. Inco is also on the receiving end of a bid from Teck Cominco.

Xstrata said the combination of the two companies will create the world's fifth largest diversified mining company with the deal to be substantially earnings and cash flow enhancing in the first full year of consolidation.

Yesterday, the group received the thumbs up from the US authorities, but Europe has up to the 13 July to report.