Anglo American Rejects 'Opportunistic' BHP Offer

As part of the proposed deal, BHP wants Anglo American to split off Anglo American Platinum Ltd and Kumba Iron Ore Ltd in South Africa

Alliance News 26 April, 2024 | 9:33AM
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Anglo American on Friday said its board has "unanimously" rejected an "opportunistic" offer from larger peer BHP Group, on grounds that it "significantly undervalues" the London-based miner.

This comes after Australia's BHP on Thursday confirmed it had offered to buy Anglo American in an all-share deal valuing the mining group at £31.1 billion.

As part of the proposed deal, BHP wants Anglo American to split off Anglo American Platinum Ltd and Kumba Iron Ore Ltd in South Africa.

Melbourne-based BHP said its unsolicited, non-binding and conditional offer will see Anglo American shareholders receive 0.7097 of a BHP share for every share share they hold in Anglo American. BHP tabled the offer to the Anglo American board on Tuesday last week.

In a formal response, Anglo American on Friday said its board had considered the BHP proposal with its advisers and concluded that the offer "significantly undervalues" the company and its future prospects.

"In addition, the proposal contemplates a structure which the board believes is highly unattractive for Anglo American's shareholders, given the uncertainty and complexity inherent in the proposal, and significant execution risks," Anglo American said.

"Anglo American is well positioned to create significant value from its portfolio of high quality assets that are well aligned with the energy transition and other major demand trends," Anglo American Chair Stuart Chambers said.

"With copper representing 30% of Anglo American's total production, and with the benefit of well-sequenced and value-accretive growth options in copper and other structurally attractive products, the board believes that Anglo American's shareholders stand to benefit from what we expect to be significant value appreciation as the full impact of those trends materialises," Chambers said, calling the BHP offer "opportunistic".

By Artwell Dlamini, Alliance News reporter 

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