London-headquartered miner Anglo American has rejected a revised $64 billion takeover bid from BHP, escalating a global merger battle that could see the Australian resources giant gain control of a wealth of copper assets, a key commodity for the world’s energy transition.
BHP chief executive Mike Henry said in statement to the London Stock Exchange late Monday evening, the miner had put a revised proposal to Anglo’s board raising its bid by $5.5 billion, an offer immediately rejected by Anglo.
Mike Henry’s revised bid values Anglo American at around $64 billion. Credit: Trevor Collens
The Australian miner said it sweetened the terms of its bid on May 7, just two weeks shy of its initial offer becoming public.
“BHP put forward a revised proposal to the Anglo American board that we strongly believe would be a win-win for BHP and Anglo American shareholders. We are disappointed that this second proposal has been rejected,” Henry said.
“BHP is disappointed that the Anglo American Board has chosen not to engage with BHP with respect to the revised proposal and the improved terms,” the miner added.
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BHP is proposing to spin off Anglo’s Kumba Iron Ore and Anglo American Platinum business before merging the two companies.
Anglo’s curt dismissal of BHP’s second proposal follows a similarly quick rejection of BHP’s initial offer – which valued the London headquartered company at around $60 billion – as “opportunistic.”
BHP said its fresh offer would increase Anglo American shareholders’ ownership of the combined post-merger group to 16.6 per cent, up from the first offer’s 14.8 per cent. BHP is proposing to give 0.8132 BHP shares for each ordinary share in Anglo American.
Source Agencies
