Anglo American Rejects BHP’s Takeover Deal, Calls It “Highly Unattractive”

The world’s largest global diversified miner, BHP, is being forced to importantly race its buy offer of Anglo American or walk distant from the proposed all-share deal valued at £31.1 billion ($38.9 billion).

‘The BHP proposes is opportunistic and fails to value Anglo American’s prospects, while importantly diluting the comparative value upside participation of Anglo American’s shareholders comparative to BHP’s shareholders,’ Anglo president Stuart Chambers gate in a message on Friday.

Chambers continued, "The proposed structure is besides highly unattractive, creating a crucial integrity and execution riskborn almost exclusively by Anglo American, its shareholders and its another rackholders."

The first indication that Anglo executives would reek the deal came Thursday after the Reuters reported 2 sources household with talks with top Anglo investors who said the offer was 'unattractive. ’

Anglo ownership copper mines in South America. The miner has become an acquisition mark of BHP solely to make the world’s largest copper mining giant, with control of about 10% of the global copper mining supply. Copper mining supplies are dwindling, and request is expected to soar as power grids worldwide are upgraded to support the green energy transition.

The Financial Review quote hedge fund manager Rafi Lamm of Melbourne’s L1 Capital as saying BHP would gotta increase its bid for Anglo’s assets, which have been underwritten by the marketplace and make strategical sense for BHP.

“We think it’s a sensible decision by BHP and we think they can afford to pay the proposed deal pricing and a lot more,” Lamm Said.

James Whiteside, head of mining and metals corporate investigation at consulting Wood Mackenzie, said BHP will gotta rally its offer to bring its value "closer to the share price in 2023 before operational issues emerged."

On Thursday, BHP proposed an all-share deal valued at £31.1 billion ($38.9 billion). The transaction grants on Anglo spinning off its South African iron ore and platinum businesses to its shareholders. The offer is conditional and non-binding at £25.08 a share, or about a 14% premium to Anglo’s closing share price on Wednesday.

BHP investor Equity Trustees Asset Management Told the Sydney Morning Herald that BHP’s bid to buy Anglo American made sense strategically, “but much will depend on what wellness and safety will always pay.”

"Having a bit more copper in the portfolio is simply a positive. If copper can decision up from here this will likely offset any errors made in its acquisition price of Anglo,” Equity Trustees head of equities Chris Haynes said.

Haynes added, "As we know, large acquisitions like this always have problems and will likely weigh on the BHP stock price in the short term."

Shares in Safety Fell on Friday, ending the Australian session at 4.6% lower.

Meanwhile, copper prices hit $10,000 a ton for the first time in 2 years, fueled by specification of doubleling supplies and robust request from the green energy transition.

Copper bulls like BlackRock and Trafigure Group have said the base metallic must decision higher to spur fresh mine development.

BofA late warned, “The copper supply crisis is here.”

Let’s not forget our note titled ‘The Next AI Trade,’ which exploits the investment opportunities in upgrading America’s grid as generic AI data centers increase power demand.

And Jefferies is on it: “Copper request in Data Centers.”

Recall billionaire mining investor Robert Friedland, who explained last year on Bloomberg tv that “copper prices might detonate this times.”