Anglo American Rejected Third Takeover Bid by BHP

SEATTLE (Scrap Monster): Leading mining company Anglo American has unanimously rejected a third unsolicited, non-binding and highly conditional takeover proposal from BHP Group Limited. The bid was received by the Board of Anglo American on 20th May, 2024. Meantime, Anglo American has agreed to extend the deadline by one more week for BHP to make a formal offer.

The latest offer had valued Anglo American at $49.2 billion (£38.6bn). It had valued Anglo American shares at £29.34 based on yesterday’s closing price, which represents a premium of 47% on current stock value. The offer would provide the company shareholders with 17.8% of a combined BHP and Anglo American.

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The Anglo American Board of Directors raised serious concerns regarding the structure as demanded by BHP. The complex process proposed in the offer is likely to take 18 months or more to complete and carries significant execution and completion risks. The required approvals may result in conditions that may impact Anglo American Platinum Limited and Kumba Iron Ore Limited, which in turn may impact Anglo American shareholders, the statement released by the company said.

Meantime, BHP Chief Executive Mike Henry stated that the revised proposal is underpinned by the company’s disciplined approach to mergers and acquisitions and its ongoing focus on delivering long term value to its shareholders.