Anglo American, the London-based mining corporation, revealed that it has received an approach from rival mining company BHP regarding a potential multi-billion-dollar takeover offer. The board of directors at Anglo American are presently reviewing the offer, but as yet have not released any indication of its value. BHP has so far made no comment on the matter.
Should the deal go ahead, it would produce one of the largest mining mergers in recent years. Anglo American operates mines in countries including Brazil, South Africa, Chile, and Australia. Its current market value is approximately £29bn. In contrast, BHP, which is based in Australia, has a market valuation of approximately A$229bn ($149bn; £119.5bn).
This move comes a year after BHP acquired Oz Minerals, the copper producer, for A$9.6bn ($6.2bn; £5bn). If the deal were to be finalised, it would increase BHP’s copper access through Anglo American’s operations in South America. Copper prices have risen by more than 15% in global markets so far this year, with the metal being in high demand as the shift to clean energy speeds up.
BHP has proposed that any final offer it makes for Anglo American be conditional upon the latter giving up its interests in platinum and iron ore operations in South Africa. BHP has until May 22 to make an official offer for Anglo American under the UK’s merger and acquisition rules. Anglo American shares have fallen by almost 10% over the past year, including during the March sale of shares by South African mining rival De Beers
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