BHP Pulled Out of Takeover of Anglo American

SEATTLE (Scrap Monster): Mining giant BHP Group has reportedly pulled out of its planned takeover of Anglo American plc.following multiple rejections of its bids submitted to Anglo American.

BHP announced that it would not be making a firm offer for Anglo American, after the latter refused to consider a request by it to extend takeover talks. The one-week extension to the original deadline of 22^nd May, 2024 to submit a binding offer had come to an end at 1600 GMT Wednesday. It must be noted that Anglo American had rejected all the three takeover proposal by BHP. Unless there is another offer, BHP cannot return for at least a period of six months, according to UK rules, sources said.

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Commenting on the development, BHP, in a statement, said that it believe that the proposal was a compelling opportunity to ensure effective growth of value of shareholders of both the companies. The company was unable to reach an agreement on its specific views in respect of South African regulatory risk and cost, it added.

Following BHP’s statement, Anglo American reiterated that it is fully focused on plans aimed at increasing the value to shareholders. Also, it outlined a plan to divest less profitable assets and focus on expanding its copper asset portfolio.