{"id":65057,"date":"2024-04-25T16:53:10","date_gmt":"2024-04-25T16:53:10","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/bhp-makes-an-offer-for-anglo-american"},"modified":"2024-04-25T17:19:33","modified_gmt":"2024-04-25T17:19:33","slug":"bhp-makes-an-offer-for-anglo-american","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/bhp-makes-an-offer-for-anglo-american","title":{"rendered":"BHP makes an offer for Anglo American"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>The world\u2019s largest mining company, BHP Group Ltd., has made a takeover approach for rival Anglo American, a move that could spark the biggest shakeup in the industry in over a decade.<\/p>\n

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.<\/p>\n

Anglo added BHP\u2019s proposal was conditional on the company first splitting off its South African platinum and iron ore units.<\/p>\n

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.<\/p>\n

It appears tailored to expand BHP\u2019s 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.<\/p>\n

\u201cIf BHP does indeed continue to pursue this deal, we would be surprised if other bidders do not emerge,\u201d analysts from Jefferies LLC led by Christopher Lafemina said in an emailed note. A bid that values Anglo at $42.6 billion \u2014 a 28% premium based on its latest share price \u2014 might get a deal \u201cacross the finish line,\u201d they said.<\/p>\n

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.<\/p>\n

However, suitors have been put off by its complicated structure and mix of commodities, and especially its deep exposure to South Africa.<\/p>\n

BHP produced about 1.2 million tons of copper in 2023 on an equity basis, while Anglo\u2019s output was 826,000 tons. That would give the combined group roughly a 10% share of global mine supply.<\/p>\n

Jefferies said antitrust issues \u201cwould likely be a problem\u201d for the deal since governments consider copper a critical mineral.<\/p>\n

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 \u2014 driving down its valuation and leaving the company vulnerable to potential bidders.<\/p>\n

It said in its statement that its board was reviewing the proposal and there was no certainty an offer would be made.<\/p>\n

Anglo\u2019s shares have dropped 12% over the last 12 months, giving the company a market value of \u00a327 billion ($34 billion). BHP, which trades in London and Sydney, has a market value of about $149 billion.<\/p>\n

Big Deals<\/p>\n

A successful takeover would represent the first mega deal among the world\u2019s biggest diversified miners in over a decade. BHP and its biggest rivals spent years on the sidelines after a series of disastrous transactions, but have warmed up to the prospect of dealmaking after reassuring investors that they have learned from past mistakes.<\/p>\n

\u201cWe would need to see the price BHP had in mind in order to form a better view,\u201d Adrian Prendergast, senior analyst at Morgans Financial Ltd. said in an emailed note.<\/p>\n

A takeover of Anglo would be \u201cmaterial but not transformative\u201d for BHP given the size of the target, he said.<\/p>\n

BHP last year bought copper producer OZ Minerals Ltd. for about $6.4 billion in its first major purchase in years, but has otherwise focused until now on selling assets such as oil, gas and coal.<\/p>\n

The clear lure here would be Anglo\u2019s South American copper business, long eyed by bigger players in the industry \u2014 even though it has recently faced setbacks and has had to reduce its copper production forecasts.<\/p>\n

It\u2019s also possible that the proposal for Anglo could now prompt others to make a move. No. 2 miner Rio Tinto Group has also been investing in copper production, while Glencore last year made an unsuccessful offer for Teck Resources, which has a coveted copper business, before eventually reaching a deal for the Canadian company\u2019s coal assets.<\/p>\n

Anglo\u2019s valuation may make it more attractive, but it remains a highly complicated business. The company owns majority stakes in two South African-listed miners \u2014 Anglo American Platinum Ltd. and Kumba Iron ore Ltd. \u2014 and is the majority owner of diamond miner De Beers.<\/p>\n

It also has a long and complicated relationship with South Africa, where the state pension fund manager is its biggest shareholder.<\/p>\n

BHP\u2019s proposal was to first hand Anglo\u2019s stakes in the two South African businesses to the smaller company\u2019s investors before proceeding with a takeover, Anglo said. The two parts of the proposal would be \u201cinterconditional,\u201d it said.<\/p>\n

Anglo\u2019s other operations include copper, nickel, steelmaking coal, Brazilian iron ore, and the iconic De Beers business.<\/p>\n

Both companies are also investing in new fertilizer businesses \u2014 BHP is building a massive potash mine in Canada, while Anglo is developing a polyhalite mine on the east coast of England.<\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. The world\u2019s largest mining company, BHP Group Ltd., 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 […]<\/p>\n","protected":false},"author":84,"featured_media":65055,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[274,315,275],"class_list":["post-65057","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-south-africa","tag-south-africa-2"],"yoast_head":"\nBHP makes an offer for Anglo American - South Africa<\/title>\n<meta name=\"description\" content=\"The world\u2019s largest mining company, BHP Group Ltd., has made a takeover approach for rival Anglo American, a move that c ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/bhp-makes-an-offer-for-anglo-american\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BHP makes an offer for Anglo American\" \/>\n<meta property=\"og:description\" content=\"The world\u2019s largest mining company, BHP Group Ltd., has made a takeover approach for rival Anglo American, a move that c ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/bhp-makes-an-offer-for-anglo-american\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-25T16:53:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-25T17:19:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/04\/sm_1714052776.205927.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"768\" \/>\n\t<meta property=\"og:image:height\" content=\"432\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/bhp-makes-an-offer-for-anglo-american#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/bhp-makes-an-offer-for-anglo-american\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"BHP makes an offer for Anglo American\",\"datePublished\":\"2024-04-25T16:53:10+00:00\",\"dateModified\":\"2024-04-25T17:19:33+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/bhp-makes-an-offer-for-anglo-american\"},\"wordCount\":821,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/bhp-makes-an-offer-for-anglo-american#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/04\/sm_1714052776.205927.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-South-Africa\",\"South-Africa\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/bhp-makes-an-offer-for-anglo-american#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/bhp-makes-an-offer-for-anglo-american\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/bhp-makes-an-offer-for-anglo-american\",\"name\":\"BHP makes an offer for Anglo American - 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