According to a source familiar with the matter, BHP Group is contemplating an enhanced offer for Anglo American after its initial $39 billion proposal was turned down by the London-listed miner. Discussions are underway regarding a revised bid, which is expected to be presented in the upcoming weeks. However, the group has not yet finalized the size and structure of the new proposal.
Rejection of Initial Offer
Anglo American rejected BHP’s $39 billion takeover offer, stating that it significantly underestimated the miner and its future potential. Despite the rejection, BHP is still in deliberations about making an improved offer. Under UK takeover regulations, BHP has until May 22 to submit a formal offer for Anglo American.
If the deal goes through, it would make BHP and Anglo American the world’s largest copper producer. Copper is a crucial metal in the clean energy transition due to its conductivity and corrosion resistance. The merger would create a mining giant responsible for approximately 10% of global copper production.
Some investors believe that Anglo American is valued at around 30 pounds per share, significantly higher than BHP’s initial offer of 25.08 pounds per share. This indicates that there is potential for BHP to increase their bid in order to secure a deal. Anglo American’s shares closed at 26.43 pounds on Friday, further supporting the argument for a higher offer from BHP.
BHP has refrained from commenting on the ongoing speculations, citing it as “rumour and speculation.” On the other hand, Anglo American has not yet responded to a request for comment from Reuters. The lack of official statements from both companies leaves room for uncertainty regarding the potential outcome of the revised offer from BHP.
The possible enhanced bid from BHP Group for Anglo American has generated significant interest in the mining industry. The impact of this potential merger on the global copper market, as well as the future prospects of both companies, remains to be seen. Investors are closely monitoring the situation as they await further developments in this ongoing saga.