Anglo American rejects BHP’s improved offer

Henry

Australian mining giant BHP has revealed that its British rival Anglo American has rejected its “enhanced” takeover offer of £34 billion.

BHP’s latest mammoth offer, which could completely reshape the international mining landscape, followed the £31.1bn initial offer that was rejected last month.

“The amended proposal was rejected. “BHP is disappointed that the board of Anglo American has chosen not to consult with BHP on the amended proposal and improved terms,” ​​the company said in a statement.

Anglo American said in a statement that its board considered the latest offer “and concluded that it continues to significantly undervalue Anglo American and its future prospects”.

BHP has increased the number of shares that will be given to Anglo investors under the improved terms and continues to plan to split up Anglo’s platinum and iron ore subsidiary in South Africa. The shares will be distributed among the UK company’s shareholders.

‘Disappointed’

“BHP has presented a revised offer to the Anglo American board which we believe will be a win-win for BHP and Anglo American’s shareholders,” said Mike Henry, chief executive of BHP.

“We are disappointed that the second offer was rejected.”

The new offer was made at around £27.53 (around R635) per share after the initial £25 (around R576) per share which Anglo rejected as “extremely unattractive” and “opportunistic” in April.

The latest offer will push Anglo’s share of the new combined group up to 16.6% from the 14.8% it previously stood at.

“BHP and Anglo American fit together strategically and the combination is a unique and compelling opportunity to unlock significant synergies by bringing together two highly complementary, world-class businesses,” said Henry.

“The combined company will have a leading portfolio of high-quality assets in copper, potash, iron ore and metallurgical coal and BHP will use its history of operational excellence to get maximum returns from these high-quality assets,” he argued.