- BHP’s proposed takeover would be the largest mining industry deal in history
- Anglo American has expressed concerns about the takeover’s complexity
BHP is calling on Anglo American to agree to extend the deadline for the Australian miner to firm up its proposed takeover bid for its FTSE 100 mining rival.
The Australian natural resources giant had until 5pm today to make another formal bid for its rival or walk away from the deal, which would be the largest mining industry deal in history if successful.
Anglo American last week agreed to begin talks with BHP despite turning down the group’s £39billion acquisition offer after rejecting two smaller bids.
Takeover battle: BHP is calling on Anglo American to extend the takeover deadline
BHP told investors on Wednesday that it has offered a ‘range of socioeconomic measures’ to try and address Anglo American’s anxieties regarding the latest offer.
London-headquartered Anglo has previously expressed concerns about the complexity of the deal, and the demand to sell its South African platinum and iron ore divisions.
BHP said it could pay an ‘appropriate reverse break fee’ if it does not gain the required antitrust and regulatory approvals in South Africa.
It said these measures would ‘provide substantial risk protection for Anglo American shareholders and supplement the significant value uplift that Anglo American shareholders will receive from the potential combination’.
BHP added: ‘A further extension of the deadline is required to allow for further engagement on its proposal.
‘This announcement does not amount to a firm intention to make an offer, and there can be no certainty that an offer will be made.’
Anglo has rejected two previous approaches worth £31billion and £34billion, saying they were too low and ‘highly unattractive’.
It has unveiled a separate plan to divest or spin off a significant chunk of its operations.
Should the takeover go ahead, the enlarged business would be responsible for producing around 10 per cent of the world’s copper, a crucial element in the green transition due to its use in technologies like solar panels and electric vehicles.
Anglo American operates three of South America’s ten highest-producing copper mines, while BHP runs the world’s biggest copper mine, Escondida, in the Atacama Desert.
Reports suggest the merged company could shift its listing from Australia to London, which would represent a major win for the embattled UK markets.
In recent years, multiple businesses have quit London or shifted their primary listing to another city in the hopes of attaining a higher valuation.
BHP was knocked off the FTSE 100 in January 2022 after deciding to end its dual listing structure and situate its main stock listing in Sydney.
Since then, building materials supplier CRH, plumbing specialist Ferguson, and mining firm AngloAshanti Gold have all moved their primary listing to Wall Street.
Anglo American shares were 1.25 per cent lower at £25.26 on Wednesday morning, while BHP Group shares were 1.8 per cent up at £23.76.