Anglo American Rejects BHP’s Unsolicited Proposal
Anglo American plc has officially rejected the unsolicited, non-binding, and highly conditional combination proposal from BHP Group Limited, following careful consideration by its Board.
The Proposal involved an all-share offer for Anglo American by BHP, contingent upon Anglo American completing two separate demergers of its entire shareholdings in Anglo American Platinum Limited and Kumba Iron Ore Limited to Anglo American shareholders. These transactions were inter-conditional.
After thorough evaluation with its advisers, the Board concluded that the Proposal significantly undervalues Anglo American and its future prospects.
Additionally, the proposed structure was deemed highly unattractive due to its complexity and significant execution risks.
Stuart Chambers, Chairman of Anglo American, emphasized the company’s strong position to create value from its portfolio of high-quality assets, particularly in copper, which represents 30% of its total production.
Chambers highlighted Anglo American’s strategic priorities focused on operational excellence, portfolio optimization, and growth to unlock full value potential.
Anglo American shareholders are advised to take no action regarding the possible offer. Further announcements will be made as necessary, though there’s no certainty that a firm offer will materialize.
According to Rule 2.6(a) of the Takeover Code, BHP must announce a firm intention to make an offer for Anglo American or state its lack of intention by May 22, 2024. This deadline may only be extended with the consent of the Takeover Panel.
It’s important to note that this announcement is not made with BHP’s agreement or approval.
