BHP Group’s last offer to acquire Anglo American was for about $53 billion (£40 billion) in the late-November blitz in which the mining giant sought to derail an Anglo American-Teck resources tie-up, sources familiar with the details have told Bloomberg.
In November, a year and a half after abandoning a previous attempt to take over Anglo American, BHP offered around $53 billion, or £40 billion, in mostly stock but also cash, to acquire Anglo American, according to Bloomberg’s sources.
BHP’s unsolicited bid tried to gatecrash the merger of equals between Teck Resources Limited and Anglo American, which was announced in early September.
But three days later, BHP Group confirmed it is no longer considering a merger with Anglo American after initial discussions, formally withdrawing under Rule 2.8 of the UK City Code on Takeovers and Mergers.
BHP said that while a combination would have offered “strong strategic merits” and “significant value for all stakeholders,” it remains committed to advancing its own organic growth plans.
The announcement ends one of the mining sector’s most closely watched takeover possibilities of the year, following months of speculation over consolidation among major diversified miners seeking to expand in copper and critical minerals.
Under Rule 2.8, BHP’s withdrawal prevents it from making another offer for Anglo American for at least six months, unless certain exceptions occur – including if Anglo American’s board agrees to revisit talks, another party makes a formal offer, or there is a material change in circumstances as determined by the UK Takeover Panel.
Meanwhile, Teck Resources and Anglo American in September announced they had agreed to combine via a merger of equals to create a copper and other critical minerals giant with a market capitalization of over $53 billion. The merger is still undergoing approvals, including by shareholders and the Canadian government.
Teck Resources and Anglo American plan create the Anglo Teck group, which will be a global critical minerals champion and top five global copper producer, headquartered in Canada, and expected to offer investors more than 70% exposure to copper.
By Charles Kennedy for Oilprice.com
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