According to a source familiar with the matter, BHP Group is contemplating making a better offer for Anglo American after its initial $39 billion proposal was turned down by the London-listed miner. Discussions are underway regarding a revised bid for Anglo American, which is expected to be presented in the upcoming weeks. However, the exact size and structure of the new proposal have not been finalized yet.
In response to inquiries regarding the potential improved offer, BHP stated that it does not engage in discussions related to “rumor and speculation.” On the other hand, Anglo American has not yet provided any official comments on the matter. The rejection of BHP’s $39 billion takeover offer by Anglo American suggests that the former believes the proposal significantly undervalues the company and its future prospects.
Under the UK takeover regulations, BHP has until May 22 to submit a formal offer for Anglo American. It is anticipated that BHP will enhance its initial offer of 25.08 pounds per share in an attempt to finalize a deal that would establish the largest copper mining company globally. While some investors of Anglo American estimate the company to be valued at around 30 pounds per share, the closing price of Anglo shares on Friday was 26.43 pounds.
One of the primary focuses of BHP’s bid for Anglo American is copper. A merger between the two companies would create an entity responsible for approximately 10% of the worldwide copper production. Copper, being crucial for its conductivity and resistance to corrosion, is utilized in various sectors including electric vehicles, power grids, and construction.
Overall, the deliberations between BHP Group and Anglo American indicate a significant development in the mining industry. With the potential for an improved offer from BHP, the future of both companies and the global copper market remains uncertain, yet promising.