Mining giant Anglo American has rejected a $60 billion takeover bid from rival BHP, citing the offer as “opportunistic” and undervaluing the company’s prospects. BHP’s proposal would position them as the world’s largest copper producer, but Anglo American’s board unanimously rejected the offer, stating that it would significantly dilute the value of their shareholders’ participation compared to BHP’s shareholders. Anglo American emphasized its focus on operational excellence, portfolio, and growth, and highlighted its well-aligned assets with the energy transition, with copper representing 30% of its total production.
BHP, on the other hand, confirmed its proposal after Anglo American’s rejection. BHP sees value in Anglo American’s high-quality iron ore operations in Brazil and metallurgical coal projects in Australia, which would complement their existing portfolio. The proposed acquisition would also increase BHP’s exposure to future-facing commodities through Anglo American’s world-class copper assets. After the completion of the acquisition, Anglo American’s other assets, such as its diamond business, would be subject to a strategic review.
If the proposal eventually becomes a deal, BHP will become the world’s biggest copper producer. This move is seen as a response to the growing resistance faced by mining companies in building new mines, forcing them to merge to achieve growth. However, analysts argue that this solution does little to bridge the supply gap itself. BHP CEO Mike Henry has previously highlighted the need for significant investment in copper projects to support the energy transition. Last year, BHP completed the acquisition of Australian copper producer OZ Minerals for $6.4 billion.
Overall, this potential acquisition reflects the mining industry’s efforts to secure resources for the energy transition. While Anglo American has rejected BHP’s offer, the future of this deal remains uncertain. Both companies continue to focus on their strategic priorities and growth potential.
