BHP Group Walks Away from Anglo American Takeover Plan

Withold bid

BHP Group has dedicated to abandon a $49 billion bid to take over Anglo American. Anglo rejected three BHP offers over the past six weeks, leading BHP to withold a binding bid after Anglo refused to grant an extension for further negotiations. The deal would have required Anglo to spin off its South African assets first.

Andy Forster, senior investment officer at Argo Investments, commended BHP’s decision as prudent.

New target

Mike Henry the BHP CEP saw the bid as a strategic move to enhance BHP’s copper assets in Latin America and metallurgical coal assets in Australia.

Kaan Peker informs that BHP may now consider targets like Antofagasta or Lundin Mining to expand its copper portfolio. Meanwhile, BHP will focus on its growth opportunities in Pilbara iron ore and copper in South Australia and Chile.

Future

Under British corporate laws, BHP must wait six months before making another approach to Anglo American unless a new party bids for Anglo first.