BHP Makes $38.8 Billion Bid for Anglo American
四月 25, 2024“The world’s largest mining company, BHP Group, has made a takeover approach for rival Anglo American, a move that could spark the biggest shakeup in the industry in over a decade.
Anglo American said late Wednesday that it had received an unsolicited all-share merger proposal after Bloomberg reported that BHP was considering a potential offer.
Anglo added that BHP’s proposal was conditional on the company’s first splitting off its South African platinum and iron ore units.
If successful, the transaction would mark a return to large-scale dealmaking for BHP, which has revived its appetite for transformational acquisitions in the past couple of years under Chief Executive Officer Mike Henry.
It appears tailored to expand BHP’s copper footprint, highlighting how the red metal has become a priority for the mining sector, and the move could flush out other suitors aiming to do the same.
“If BHP does indeed continue to pursue this deal, we would be surprised if other bidders do not emerge,” analysts from Jefferies LLC, led by Christopher Lafemina, said in an emailed note.
A bid that values Anglo at $42.6 billion — a 28% premium based on its latest share price — might get a deal “across the finish line,” they said.
Anglo American has long been viewed as a potential target among the largest miners, particularly because it owns big South American copper operations at a time when most of the industry is eager to add reserves and production.
BHP produced about 1.2 million tons of copper in 2023 on an equity basis, while Anglo’s output was 826,000 tons. That would give the combined group roughly a 10% share of global mine supply.
Jefferies said antitrust issues “would likely be a problem” for the deal since governments consider copper a critical mineral.
Anglo has faced a series of major setbacks over the past year as prices for some of its key products plunged, while operational difficulties have forced the company to slash its production targets — driving down its valuation and leaving the company vulnerable to potential bidders.
It said in its statement that its board was reviewing the proposal, and there was no certainty an offer would be made.
Anglo’s shares have dropped 12% over the last 12 months, giving the company a market value of £27 billion ($34 billion). BHP, which trades in London and Sydney, has a market value of about $149 billion.”
SOURCE: Business Tech online