South Africa Reacts to BHP Group’s Bid for Anglo American
President Cyril Ramaphosa’s spokesperson addressed BHP Group’s proposed bid for Anglo American, framing it as “normal market activity” that South Africa is monitoring closely.
BHP is reportedly contemplating an enhanced offer for Anglo American after its initial $39 billion bid was rebuffed by the London-listed miner, according to a source cited by Reuters.
Vincent Magwenya, the spokesperson, emphasized that it is still early in the process regarding BHP’s proposal to Anglo. He stated, “We will follow, like everybody else, the process as it unfolds. We don’t, as a country, go out of our way to block market activity.”
BHP has until May 22 to submit a binding bid. Should the deal materialize, it would form the world’s largest copper mining entity, a pivotal player in the global shift towards clean energy.
One stipulation of BHP’s proposal is that Anglo must first distribute its stakes in Anglo American Platinum (Amplats) and Kumba Iron Ore to shareholders, both of which have operations in South Africa.
The potential departure of Anglo, which was established in South Africa in 1917, would deal a significant economic blow to the country.
South Africa’s mining sector has been grappling with job cuts and reduced investment amid declining metal prices and various local challenges compounded by issues with the state-owned port and freight rail company.
BHP’s bid emerges against the backdrop of an imminent general election, where voter discontent over a stagnant economy and high unemployment threatens the long-standing majority of the African National Congress.
