Anglo American rejects improved BHP takeover offer

BHP said Anglo American rebuffed an improved takeover offer, which valued the mining company at about £34 billion (R781.85 billion).

BHP, the world’s largest miner, is seeking to buy Anglo for its South American copper assets. That would make it the No. 1 copper producer, alongside its sprawling portfolio of iron ore and coal. BHP’s initial approach was rejected by Anglo.

BHP said Anglo rejected its latest offer, which was 15% higher than its first approach, on Monday.

The improved proposal – tabled on May 7 – still included the stipulation that Anglo must spin off its South African units before the acquisition. Anglo has dismissed that structure.

The pressure is now on Anglo to show shareholders how it can deliver more value independently, while BHP will need to improve its offer again for a deal to happen. Top executives of both companies are at a conference in Miami this week.

If successful, a takeover 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.

“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,” Henry said in a statement on Monday. “We are disappointed that this second proposal has been rejected.”

Anglo shares fell 0.6% as of 1:44 p.m. in London, while BHP’s London-traded shares were steady.