Mining Giant Anglo American Rebuffs Another BHP Takeover Offer

2024 05


Anglo American said on Monday it had rejected a second takeover offer from BHP which would create a major mining group.

Last month, mining giant BHP made an all-share offer for fellow major Anglo American. If completed, the deal would be the biggest one in the mining world in years.    

On the day after announcing it had received an offer from BHP, Anglo American rejected the proposal, after the Board and its advisers concluded that it “significantly undervalues Anglo American and its future prospects.”

Under takeover offer rules, BHP must by not later than May 22, 2024, either announce a firm intention to make an offer for Anglo American or announce that it does not intend to make an offer.

Anglo American said today that its board received on May 7, 2024 a second unsolicited, non-binding, and highly conditional combination proposal from BHP.

The structure of the latest proposal is unchanged from the proposal previously rejected on April 26, 2024, Anglo American said, adding that “The Board has considered the Latest Proposal with its advisers and concluded that it continues to significantly undervalue Anglo American and its future prospects.”

“Aside from significantly undervaluing Anglo American, the Latest Proposal continues to contemplate a structure which the Board believes is highly unattractive for Anglo American’s shareholders, given the uncertainty and complexity inherent, and significant execution risks,” said the company.

BHP’s chief executive officer Mike Henry commented, “We are disappointed that this second proposal has been rejected.”

“BHP and Anglo American are a strategic fit and the combination is a unique and compelling opportunity to unlock significant synergies by bringing together two highly complementary, world class businesses,” Henry added.

According to BHP, the combined business would have a leading portfolio of high-quality assets in copper, potash, iron ore, and metallurgical coal.

The bidding saga could become even more complicated as reports emerged earlier this month that commodity giant Glencore held early internal discussions about making a potential approach for Anglo American.

By Charles Kennedy for Oilprice.com

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