MELBOURNE/LONDON, April 25 (Reuters) – BHP Group (BHP.AX), opens new tab bid $38.8 billion for Anglo American (AAL.L), opens new tab on Thursday, offering a deal to forge the world’s biggest copper miner and driving its smaller rival’s shares nearly 14% higher.
BHP said it will offer Anglo’s shareholders 25.08 pounds ($31.39) per share, a premium of 31%, and spin out its London-listed target’s iron ore and platinum assets in South Africa, where BHP, the world’s largest listed miner, has no activities.
Anglo, which owns mines in countries including Chile, South Africa, Brazil and Australia, said its board was reviewing BHP’s unsolicited, non-binding and highly conditional proposal. Under UK takeover rules, BHP has until May 22 to make a firm offer.
Shares in Anglo were up 13.7% at 25.06 pounds at 1123 GMT.
A deal would create a group with around 10% of the global output of copper, now one of the most sought-after metals.
It could also trigger further consolidation in a sector which has seen a rush of mergers and acquisitions as companies attempt to raise their exposure to metals which, like copper, are seen as critical to the global energy transition.
Source: REUTER
