BHP makes US$39B Anglo approach to create mining giant – by Thomas Biesheuvel, Dinesh Nair and Crystal Tse (Bloomberg News – April 25, 2024)

BHP Group Ltd. proposed a takeover of Anglo American Plc that valued the smaller miner at £31.1 billion (US$38.9 billion), in a deal that would create the world’s top copper producer while sparking the industry’s biggest shakeup in over a decade.

The biggest mining company proposed an all-share deal in which Anglo would first spin off controlling stakes in South African platinum and iron ore companies to its shareholders before being acquired by BHP. The total per-share value of the non-binding proposal was about £25.08, BHP said, a 14 per cent premium to Anglo’s closing share price on Wednesday.

A tie-up with Anglo would give BHP roughly 10 per cent of global copper mine supply ahead of an expected shortage that many market watchers have predicted will send prices soaring. If successful, the transaction would mark a return to large-scale dealmaking for BHP, while potentially flushing out other suitors aiming to boost their exposure to the metal that’s closely linked to the global energy transition.

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