Anglo American has rebuffed BHP Group’s $39 billion takeover bid, deeming it significantly undervalued. BHP, with a deadline of May 22 to make a binding offer, is expected to revise its bid to secure a deal that would create the world’s largest copper miner, a crucial player in the clean energy transition.
Anglo’s London-listed shares surged 5.7 percent to 27.04 pounds by 1303 GMT, buoyed by news that activist fund Elliott had amassed a $1 billion stake. The company expressed concern over the complexity of BHP’s proposal, asserting its ability to create substantial value from assets aligning with energy transition and other demand trends.
Amid a strategic asset review prompted by a sharp drop in annual profit and write-downs, Anglo’s management and investors consider BHP’s initial offer unattractive and anticipate a higher bid. Copper prices hit a two-year high above $10,000 a metric ton on Friday, fueling market interest.
BHP’s proposal includes Anglo distributing its stakes in South African operations, Amplats and Kumba Iron Ore, a move seen as potentially detrimental to South Africa’s economy. The government, facing public discontent ahead of elections, is closely examining the deal.
Despite potential hurdles like differing regional jurisdictions and lower-margin businesses, BHP is pressing ahead with its bid. CEO Mike Henry and other executives are expected to provide further details next week. If successful, this deal would mark the largest mining takeover of 2024 and could lead to further industry consolidation.
