BHP Proposes £31bn Takeover Bid for Anglo American
UK-based Anglo American, a prominent name in the mining industry, has received a takeover proposal worth £31 billion from its rival, BHP. The offer, which aims to grant BHP access to Anglo American’s esteemed copper assets, is currently under scrutiny by Anglo American’s board of directors, as confirmed by the company to the BBC.
Should the deal proceed, it would mark one of the largest mergers in the mining sector in recent years. Prior to the public announcement of the approach, Anglo American boasted a market value of approximately £29 billion.
BHP, headquartered in Australia, holds the distinction of being the world’s largest publicly listed mining company, with a market valuation of around A$229 billion (£119.5 billion). This move follows BHP’s acquisition of copper producer Oz Minerals for A$9.6 billion a year prior.
The potential acquisition would enhance BHP’s foothold in the copper market, particularly leveraging Anglo American’s operations in South America. The surge in copper prices on global markets, propelled by the growing demand for clean energy solutions, adds further significance to the proposed deal.
Analysts speculate that Anglo American’s presence in the copper industry, coupled with its recent stock performance decline, likely contributed to BHP’s interest in the acquisition. This sentiment is echoed by Tim Waterer, chief market analyst at KCM Trade.
The news of BHP’s takeover bid has reverberated across financial circles, with Susannah Streeter from Hargreaves Lansdown expressing concerns about the potential impact on the London Stock Exchange, where Anglo American is listed. BHP, having shifted its primary listing to Sydney in 2022, could set a precedent for other major companies to depart from the exchange.
Following the announcement, Anglo American’s shares surged by over 12% in early trading, reaching £24.86. BHP’s proposal includes conditions such as Anglo American divesting its interests in platinum and iron ore operations in South Africa.
According to UK merger and acquisition regulations, BHP has until May 22 to submit a formal offer for Anglo American.