The Board of Directors of Anglo American Plc reviewed BHP Group Limited's merger proposal dated April 24, 2024 with the participation of consultants and decided to reject the proposal. This is reported in a press release from Anglo American.
From the point of view of the Anglo American board, BHP's offer worth $38.8 billion (31.1 billion pounds) significantly undervalues the company and provides for a structure that is extremely unattractive to Anglo American shareholders, given the uncertainty and complexity of its implementation, as well as significant execution risks.
Anglo American, with a market value of 27 billion pounds ($34 billion), owns a controlling stake in two South African mining companies: Anglo American Platinum Ltd. and Kumba Iron ore Ltd. and is the main owner of the diamond mining company De Beers.
BHP's proposal provides for the allocation of all stakes in two divisions (Anglo American Platinum Limited and Kumba Iron Ore Limited) before the takeover.
The Board of Directors of Anglo American believes that the company has good prospects for generating significant profits due to its portfolio of high-quality copper production assets and other structurally attractive products that correspond to the transition period in the energy sector and other major demand trends.
BHP must announce no later than May 22, 2024, its firm intention to put forward a revised offer to acquire Anglo American or abandon the deal.
BHP bought out copper producer OZ Minerals Ltd in 2023 for $6.4 billion. Previously, the company was engaged in the acquisition of assets in the oil and gas and coal sectors.
BHP Group Ltd. is a mining company focused on the extraction of oil and gas, copper, iron ore and coal. The main facilities are located in Australia, as well as in the USA, Chile, Peru and other countries. BHP produced about 1.2 million tons of copper in 2023. The headquarters are located in Melbourne (Australia) and London (England). BHP's market value is estimated at $149 billion.
Anglo American is a British mining group of companies based in South Africa. The company owns 85% of the diamond monopoly De Beers (the remaining 15% belongs to the Government of Botswana). Anglo American is also the largest supplier of platinum group metals (platinum and palladium).
More news is on the Telegram channel "Mergers and Acquisitions. AK&M».
