BHP Group’s initial proposal of $39 billion to acquire Anglo American was met with rejection by the London-listed miner. Anglo American deemed the offer as significantly undervaluing the miner and its future prospects. This rejection has prompted BHP to consider making an improved offer in the coming weeks.
According to a source familiar with the matter, BHP is currently in discussions regarding a revised bid for Anglo American. The group has not yet finalized the size and structure of the new proposal, indicating that the deliberations are still ongoing. It is evident that BHP is keen on pursuing a deal with Anglo American despite the initial setback.
In response to queries about the potential revised bid, BHP has refrained from commenting, referring to it as “rumour and speculation.” On the other hand, Anglo American has not provided an immediate response to Reuters’ request for comment. The situation remains fluid as the two companies navigate the complexities of a potential acquisition deal.
Under UK takeover rules, BHP has until May 22 to submit a formal offer for Anglo American. It is anticipated that BHP will enhance its initial offer of 25.08 pounds per share in a bid to secure a deal. This revised offer is crucial for BHP as it aims to become the world’s largest copper miner through a potential merger with Anglo American.
Copper has emerged as a focal point in BHP’s bid for Anglo American. A merger between the two entities would create a conglomerate responsible for approximately 10% of global copper output. Given the metal’s significance in clean energy technologies, such as electric vehicles and power grids, this acquisition could have far-reaching implications for the industry.
BHP Group’s consideration to make an improved offer for Anglo American underscores the competitive nature of the mining sector. The potential merger between the two companies has the ability to reshape the copper market and establish a dominant player in the industry. As the discussions progress and a revised bid is finalized, the outcome of this acquisition bid will be closely monitored by investors and industry experts alike.