BHP Group Mulls Enhanced Offer for Anglo American After Initial Bid Rejection
BHP Group is contemplating an improved proposal for Anglo American after its initial $39 billion bid was turned down by the London-listed mining company, according to a source familiar with the situation briefed Reuters.
Discussions are underway within BHP regarding a revised bid for Anglo American, which is expected to be presented in the coming weeks, the source disclosed. However, the specifics of the new proposal, including its size and structure, are still being deliberated, the source added.
BHP declined to comment on what it termed as “rumor and speculation,” while Anglo American did not immediately respond to a Reuters request for comment.
Anglo American rebuffed BHP’s $39 billion takeover offer last Friday, contending that it considerably underestimated the company and its future potential.
Under UK takeover regulations, BHP has until May 22 to submit a formal bid for Anglo American. It is anticipated that BHP will enhance its initial offer of 25.08 pounds per share in an effort to secure a deal that would establish the world’s largest copper miner, a metal pivotal to the transition toward clean energy.
According to unnamed Anglo American investors cited by Reuters, the company’s value is estimated to be around 30 pounds per share.
Anglo shares concluded at 26.43 pounds on Friday.
The primary focus of BHP’s bid has been on copper. A merger with Anglo would create a conglomerate responsible for approximately 10% of the global copper output, a metal extensively utilized in various applications ranging from electric vehicles and power grids to construction, owing to its conductivity and resistance to corrosion.
If successful, the deal would mark the largest mining acquisition globally in 2024 thus far and would rank among the top 10 largest transactions ever in the sector, as per LSEG data.
