BHP’s latest bid for Anglo topped $53B — report

[Ben Graham]

BHP is said to have offered around £40 billion ($53 billion) in its latest failed attempt to acquire Anglo American (LON:AAL), people with knowledge of the talks told Bloomberg News.

The world’s largest miner miner pitched roughly £34 a share (approx. $42.50) late on Nov. 20, a 24% premium to Anglo’s £27.36 close. The offer, mostly stock with some cash, briefly lifted Anglo shares as much as 2.7% on Monday in London, pushing them to a two-week high.

The approach surfaced Sunday morning and was rejected by that evening, and while BHP later confirmed the discussions, neither company has publicly disclosed the bid’s value.

Analyst say Anglo’s board turned down the proposal largely because it expects more value from its planned acquisition of Canada’s Teck Resources (TSX:TECK.A | TECK.B). The two companies operate neighbouring copper mines in Chile’s Andes, and a merger would create a top-five global copper producer, bolstering a crucial supply chain for the energy transition.

Anglo may have also feared that a drawn-out regulatory review of a BHP tie-up could expose the offer to swings in BHP’s share price.

BHP drops fresh Anglo bid as Teck deal nears vote

Anglo has long been seen as a takeover target thanks to its copper portfolio, though its diamonds and platinum businesses have complicated past approaches. BHP made a $49-billion bid last year but walked away after Anglo rejected a structure that required spinning off those South African units.

BHP’s bid represented nearly a 50% premium to Anglo’s closing price on Sept. 8, the day before it unveiled the Teck deal. BHP shares have gained about 6.6% in both Sydney and London this year, valuing the company at almost A$216.2 billion ($142 billion). Both companies declined to comment.