Anglo American rejects new R782 billion takeover offer from BHP

 ·13 May 2024

BHP says Anglo American has rejected an improved £34 billion (R782 billion) takeover offer.

The mining group said that it sent a revised proposal on May 7, which Anglo American rejected today, 13 May 2024.

The Australian miner said it was disappointed that the British company had decided not to engage with it. 

“BHP put forward a revised proposal to the Anglo American Board that we strongly believe would be a win-win for BHP and Anglo American shareholders. We are disappointed that this second proposal has been rejected,” said BHP CEO Mike Henry.

The new proposal would still have to split off Anglo American Platinum and Kumba Iron Ore businesses in South Africa.

“BHP confirms that the transaction structure has been designed to ensure the demergers are sequenced to complete immediately before the scheme of arrangement becomes effective, which will result in Anglo American shareholders receiving shares in Anglo Platinum and Kumba when they receive the BHP Share consideration.”

“BHP would also assume the liabilities of Anglo American on completion, which would include the costs associated with completing the demergers and any other transaction-related costs.”

The move has received widespread reaction across markets and government officials, with many stating that South Africa is no longer an investment destination.

Minister of Energy and Mineral Resources Gwede Mantashe said that he would have voted against BHP’s offer.

However, BHP said that the move not to include the South African assets was not due to an indictment of South Africa but rather its portfolio and commodity needs.

“South Africa will continue to benefit from Anglo Platinum and Kumba as major standalone South African mining companies and they would be better placed to reinvest in South Africa,” said BHP.

“Under the proposed structure, shares for Anglo Platinum and Kumba would continue to be listed on the Johannesburg Stock Exchange (JSE), a mature and highly liquid exchange, and both companies would continue to be run by established South African based management teams.”

“BHP intends to maintain its listing on the JSE and is expected to achieve a JSE index weighting of approximately 5% on completion.”

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