The company's logo adorns the side of BHP's global headquarters in Melbourne on February 21, 2023. – The Australian multinational, a leading producer of metallic coal, iron ore, nickel, copper and potash, said its net profit fell by 32 percent year-on-year. year to $6.46 billion in the six months to December 31. (Photo by William West/AFP) (Photo by William West/AFP via Getty Images)
William West | AFP | Getty Images
LONDON — Anglo American It rejected a third takeover offer from a competitor BHP Group On Wednesday, the companies agreed to extend the deadline for the talks by one week.
“The board has carefully considered BHP's latest offer and concluded that it does not meet the value expectations provided to Anglo American shareholders and has unanimously rejected it,” Anglo American Chairman Stuart Chambers said in a statement on the London Stock Exchange's website.
“However, the Board wishes to continue engaging with BHP and its advisors on this matter and has therefore requested a one-week extension of the PUSU deadline which the committee agreed to,” Chambers added.
The British miner confirmed that BHP's third offer offered around £29.34 per Anglo American share, based on undisturbed share prices as of market close on April 23.
Before discussions were extended, under UK takeover rules, BHP previously had until 5:00pm in London to make a formal and final offer for Anglo after a four-week bidding battle.
Anglo American shares rose 0.35% shortly after the announcement, while BHP shares fell more than 3.4%.
The Australia-based mining and metals giant has made two previous non-binding offers for Anglo, as it seeks to consolidate its dominance in the copper industry given the metal's key role in the energy transition and products such as electric cars, power grids and wind turbines. .
The combined companies will form a copper mining giant and the world's largest player in the field, providing 10% of global production, according to a Reuters analysis.
However, Anglo rejected both previous offers, saying they “significantly underestimate the value of the company and its future prospects”.
BHP's previous bids included Anglo's merger requirements from Anglo American Platinum Limited and Kumba Iron Ore Limited, two entities that together account for a significant proportion of the company's copper production. Chambers said at the time that the proposal created “significant uncertainty” and implementation risk for the company.
Anglo later announced plans to spin off the highly valued De Beers diamond unit, as well as its steel, coal, nickel and platinum businesses, as part of a sweeping restructuring of its 107-year-old business.
Anglo chief executive Duncan Wanblad said the restructuring was part of existing efforts to “simplify the business and provide greater shareholder value”.
The takeover offensive paves the way for the return of mega deals after more than a decade of quiet in the mining industry. The recent rise in copper has also increased demand in this area, with BHP competitor Rio Tinto similarly expanding into the metals sector.
