Mining giant BHP Group on Thursday said it had made an all-share takeover offer for rival Anglo American, valuing the smaller company at £31.1 billion ($38.9 billion).
Anglo American shares were 13% higher at 10:05 a.m. in London.
The company confirmed it had received an “unsolicited, non-binding and highly conditional combination proposal,” which it said it was reviewing with advisers.
Australia-based BHP, the biggest listed miner according to Companies Market Cap, said that the deal would deliver 0.7097 BHP shares per Anglo American share to Anglo American’s ordinary shareholders.
BHP said the combination would optimize Anglo American’s “assets and long-term growth potential” with its own “higher margin cash generative assets and growth projects along with its larger free cash flows and stronger balance sheet.”
Source: CNBC
