Building|Copper|Energy|Iron Ore|Mining|Platinum
Building|Copper|Energy|Iron Ore|Mining|Platinum

Investors relieved BHP walked from Anglo takeover deal

30th May 2024

By: Reuters


Font size: - +

SYDNEY - Investors welcomed BHP Group's decision to walk away from a $49-billion plan to take over its rival Anglo American, which rejected three proposed offers from the top global miner over the past six weeks.

While BHP's Australian-listed shares fell 1.6% on Thursday, they were in line with its peers.

"As investors, it wasn’t obvious that the proposed deal was very accretive. Yes it would bring more copper to the portfolio, but depending on what they paid for it, it's not necessarily accretive to the share price," said Brenton Saunders, Pendal Group portfolio manager.

Anglo said after BHP's statement on Wednesday that it was fully focused on delivering plans it has set out to increase value to shareholders.

BHP's decision to withhold a binding bid came after Anglo said it would not grant the Australian-headquartered mining group a further extension to iron out details of a deal.

The developments ended a tense standoff between the two global mining giants and negotiations in which shareholders warned BHP not to pay too much to secure control over Anglo.

"This removes the risk of them overpaying and the big dilutionary share issue," said John Milroy, a private wealth adviser at Ord Minnett.

"Clearly they remain acquisitive and will be shifting through their other targets for building out the copper portfolio."

BHP aimed to win control of Anglo's prized copper assets in Latin America and increase access to a metal central to the global shift towards clean energy and electric vehicles, and analysts expect it will look for ways to seal a deal down the track.

"BHP will bide its time for six months and see how investors agitate on the Anglo side," said analyst Kaan Peker of RBC in Sydney.

The structure of BHP's proposal was the major stumbling block which required Anglo to unbundle its South African platinum and iron ore businesses.

Defending its position to reject BHP, Anglo outlined plans to divest its less profitable assets and focus on expanding copper output.

Anglo's shares closed 3% lower at 24.80 pounds in London trading on Wednesday.

BHP now has to wait six months before it can approach Anglo again under the British corporate laws, but it can return if a new party bids for its takeover target.

Edited by Reuters


Latest Multimedia

Resources Watch
Resources Watch
Updated 1 hour 38 minutes ago


Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.


Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:1.865 1.9s - 89pq - 2rq
1: United States
Subscribe Now
2: United States