Anglo rejects BHP takeover bid ! Copper & Gold for the future !
Anglo rejects BHP takeover bid as significantly undervalued
The tie-up would give BHP about 10% of the global copper mine supply ahead of an expected shortage
Author of the article:
Bloomberg News
Thomas Biesheuvel
Published Apr 26, 2024 • Last updated 2 hours ago • 2 minute read
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Anglo American PLC has rejected a US$39-billion takeover proposal from BHP Group Ltd., saying it significantly undervalues the company.
Under the proposed all-share deal, Anglo would first spin off controlling stakes in South African platinum and iron ore companies to its shareholders before being acquired by BHP. The total per-share value of the non-binding proposal was about 25.08 pounds, BHP said Thursday.
Anglo’s rejection was widely expected. Analysts and some Anglo investors had seen BHP’s proposal as well below the sort of price that would bring the 107-year-old miner to the table. BHP will now have to improve its offer if it wants to start talks.
“The BHP proposal is opportunistic and fails to value Anglo American’s prospects,” Anglo chair Stuart Chambers said in a statement.
Just two years ago, Anglo was trading at almost 43 pounds a share, but it’s been battered by major operational and market setbacks. Anglo shares were steady in London, after jumping 16 per cent on Thursday.
A tie-up with Anglo would give BHP roughly 10 per cent of the global copper mine supply ahead of an expected shortage that many market watchers have predicted will send prices soaring. If successful, the transaction would mark a return to large-scale dealmaking for BHP, while potentially flushing out other suitors aiming to boost their exposure to the metal that’s closely linked to the global energy transition.
Anglo has long been viewed as a potential target among the largest miners, particularly because it owns attractive South American copper operations at a time when most of the industry is eager to add reserves and production. Still, suitors have been put off by Anglo’s complicated structure and mix of other commodities from platinum to diamonds, and especially its deep exposure to South Africa.