Commodity market processes will be dealt with primarily at our Portfolio Investment Day 2024 conference on May 16, in which participation is free after registration.
THE ANGLO AMERICAN MINING COMPANY REFUSED THE 39 BILLION DOLLARS ACQUISITION OFFER MADE BY THE BHP GROUP,
claiming that it undervalues the company. BHP’s proposed deal would be based on a share swap that would first transfer a majority stake in Anglo’s platinum and iron ore companies in South Africa to BHP shareholders before Anglo itself is acquired. The non-binding offer, announced by BHP on Thursday, was valued at around £25.08 per share.
Analysts and some Anglo investors had previously believed that BHP’s offer is not high enough to bring Anglo to the negotiating table at all. In light of this, BHP should improve its offer if it wants to continue serious negotiations.
Stuart Chambers, head of Anglo American, said:
BHP’s offer is opportunistic and does not adequately reflect Anglo American’s future prospects.
He also added that the structure of the proposed transaction would be extremely disadvantageouswould involve significant uncertainties and execution risks, which would be largely borne by Anglo American and its shareholders.
In case of a successful merger
BHP would have a share of around 10 percent in the global copper mining market,
moreover, according to many analysts it is expected that a serious shortage may soon develop in this segment, which can result in a significant price increase – in this regard, Portfolio also published several analyses, the most recent one can be read here.
Cover image source: Getty Images
