Anglo American Plc has decided to engage in discussions with BHP Group after rejecting BHP’s third proposal worth £38.6 billion ($49 billion). This development marks the possibility of a significant mining deal taking place for the first time in over ten years. Anglo American’s board stated BHP made a highly conditional takeover offer to their board on Monday.
Although BHP has increased the number of shares it is offering, they still insist that Anglo should first divest majority stakes in South African platinum and iron ore companies. Anglo American deems the latest proposal to be overly complex but has expressed its willingness to continue discussions with BHP. BHP confirmed the new offer as final. However, they mentioned the possibility of further improving the share ratio. If another bidder offers a higher price or Anglo American’s board approves a higher bid, the share ratio could increase.
This announcement adds an extra layer of drama to a month filled with captivating developments in the mining world. It signifies the return of the industry’s leading player to mega mergers and acquisitions, after years of being on the sidelines.
Anglo American received two prior proposals from BHP. The first proposal suggested dividing the company, while the second proposed an acquisition. Anglo rejected both proposals. Instead, the company unveiled its own bold restructuring plan.The power struggle over Anglo American’s future unfolds amidst soaring copper prices.
Speculative investors are fueling this price increase, anticipating future scarcities. The new deadline for extended negotiations, known as a put-or-shut-up (PUSU) deadline, is set at 5pm on Wednesday, May 29th.
