Anglo American Rejects 'Opportunistic' £31bn BHP Bid

Anglo American Declines BHP Group's Takeover Proposal

In a shocking turn of events, FTSE 100 miner Anglo American announced it has rejected a £31.1 billion takeover proposal from rival BHP Group. The company argued that the offer significantly undervalued the company's current positioning and future prospects.

Takeover Aiming to Create Mining Giant

The ambitious proposal by BHP aimed to create a mining behemoth responsible for an approximate 10% of the world’s copper production. However, the proposed deal was met with scepticism from business analysts and faced opposition in South Africa.

Rejections Echoed by Investors

Investors labelled BHP's bid as ‘opportunistic’ given Anglo American's ‘depressed’ valuation. Echoing these sentiments, FTSE 100-listed Anglo deemed the proposal as undervaluing the company and its future prospects. The resisted merger would have led to the separation of Anglo American's platinum business and its Kumba Iron Ore unit. Anglo called this proposition ‘highly unattractive’ for its shareholders due to the potential risks and complexities involved.

BHP's Shares Take a Hit While Anglo's Remain Unaffected

Following the announcement, BHP shares were down by 1.1 percent, while Anglo's shares remained flat, unaffected by the BHP bid. Anglo chair Stuart Chambers described the deal as ‘opportunistic’ and claimed it failed to value Anglo American's prospects correctly. He further stated that it indirectly diluted the value participation of Anglo American's shareholders relative to BHP's shareholders.

Anglo American's Growth Potential

Chambers emphasised that Anglo American is perfectly 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. With Anglo American's total production made up of 30 percent copper, the company's Board believes that Anglo American's shareholders stand to benefit from significant value appreciation as the full impact of these trends materialises.

For more information and the latest updates, click here to explore more on Google News.