Anglo American rejects BHP's offer

Anglo American rejects BHP's offer
Anglo American rejects BHP's offer
Share:
Following the announcement made by the Australian giant BHP regarding an offer to acquire a portion of Anglo American's global business, the British company's Board of Directors provided an update stating that “the unsolicited, non-binding, and highly conditional offer was unanimously rejected by the company.”

By Panorama Minero

The proposal consisted of an all-share offer for Anglo American by BHP, with the requirement that Anglo American complete two separate demergers of its stakes in Anglo American Platinum Limited and Kumba Iron Ore Limited. "Both the all-share offer and the required demergers would be inter-conditional," stated Anglo American, and the Board, after evaluating the proposal with its advisers, concluded that it "significantly undervalues Anglo American and its future prospects."

"Furthermore, the Board finds the structure proposed by BHP unattractive for shareholders due to the inherent uncertainty and complexity in the offer, as well as significant risks in its execution," they added.

Following the announcement, Stuart Chambers, chairman of the London-based company, commented, "Anglo American is well-positioned to create significant value from its portfolio of high-quality assets, which align with the energy transition and other major demand trends. With copper representing 30% of Anglo American's total production, and with the benefit of well-sequenced and value-accretive growth options in copper and other structurally attractive products, the Board believes that Anglo American shareholders will benefit from the expected significant increase in value as those trends take full effect."

"The BHP proposal does not reflect the prospects of Anglo American and significantly dilutes the relative value participation of Anglo American's shareholders compared to BHP's shareholders. The proposed structure is also highly unattractive, creating substantial uncertainty and execution risks that fall almost entirely on Anglo American, its shareholders, and other stakeholders. Anglo American has defined clear strategic priorities: operational excellence, solid portfolio and growth to maximize its value potential and is entirely focused on achieving that."

As a result of this announcement, a "offer period" has begun and BHP has until May 22 to declare its firm intention to make a concrete offer for Anglo American or to decline its position.

Anglo American is one of the largest global producers of copper, diamonds, and platinum, although the offer sent by the Australian giant did not intend to include its platinum or African iron operations in the deal. The operation aimed to acquire a portion of the diamond mining business Anglo owns in South Africa, its copper business, its nickel business, and its iron business in Brazil.

Published by: Panorama Minero

Category: News

Magazine

Edición 533 - agosto 2024
Edición 532 - Julio 2024
Edición 531 - Junio 2024
Edición 530 - Mayo 2024
Edición 529 - Abril 2024
2024 Argentine Mining Compendium
Edición 528 - Marzo 2024
Edición 527 - Febrero 2024
Edición 526 - Diciembre 2023
Edición 525 - Noviembre 2023
Edición 524 - Octubre 2023
Edición 523 - Septiembre 2023

Events

  • Expo San Juan
  • Lithium in South America

Join our mining community!


Subscribe to our newsletter for exclusive news, insights, and updates on the mining industry and Panorama Minero's latest initiatives.

Imagen ilustrativa para el artículo: The Event of the Year in Lithium: A Meeting of Industry Leaders on October 9 and 10

The Event of the Year in Lithium: A Meeting of Industry Leaders on October 9 and 10

Jujuy will take center stage at the 13th edition of the International Seminar: Lithium in South America, the pioneering event in the lithium sector, organized by the specialized media Panorama Minero since 2011. As in previous years, it is expected to gather thousands of representatives linked to one of the most attractive segments of both Argentine and global mining.
Imagen ilustrativa para el artículo: Mining Exports Represented 9.1% of Total Argentine Exports

Mining Exports Represented 9.1% of Total Argentine Exports

Mineral exports during August 2024 reached US$550 million, accumulating a total of US$2.736 billion in the first eight months of the year. This information comes from a recent report by the National Mining Secretariat, presented at the end of September.
Imagen ilustrativa para el artículo: GEMERA Announces New Board of Directors

GEMERA Announces New Board of Directors

The Group of Mining Exploration Companies of the Argentine Republic (GEMERA) has announced the new formation of its Board of Directors, which will lead the organization in its mission to promote the sustainable development of the mining industry in the country.
Salta to Review Taca Taca's Environmental Impact Assessment Ahead of Construction

Salta to Review Taca Taca's Environmental Impact Assessment Ahead of Construction

The province of Salta will host a technical and scientific meeting and joint inspection regarding the Taca Taca Project, one of Argentina's five major copper initiatives. Various departments within the Ministry of Production and Sustainable Development, together with the Argentine Geological and Mining Service (SEGEMAR), will assess the project's Environmental and Social Impact Assessment (ESIA), while also conducting on-site oversight and monitoring activities.
NGEx Announces Exploration Plan for Lunahuasi

NGEx Announces Exploration Plan for Lunahuasi

NGEx Minerals Ltd. announced its exploration plan and strategy for the largest drill program to date at the Lunahuasi high-grade copper-gold-silver project in San Juan province. The field team is on site preparing for mobilization of drill rigs with drilling expected to start in early October.
Salta: Hanaq to Launch a Pilot Plant of 3,000 Tons of Lithium

Salta: Hanaq to Launch a Pilot Plant of 3,000 Tons of Lithium

Hanaq Group has achieved a significant milestone in its Doncella lithium project, located in the Arizaro Salt Flat, in Salta province, by obtaining the Environmental Impact Statement (EIA) which will allow the construction of a 3,000-ton-per-year pilot plant for lithium carbonate. This progress came after successfully completing the Free and Informed Public Consultation (CPLI) and the Public Hearing in the local community of Tolar Grande.
Gold Price Hits a New All-Time High

Gold Price Hits a New All-Time High

The gold market continues to show strong momentum, reaching a new all-time high this week. The spot price of the yellow metal surpassed US$2,660 per ounce for the first time during the September 24th session, driven by a combination of economic and geopolitical factors that continue to boost its demand as a safe-haven asset.
Lithium: Arcadium Lithium Announces Ambitious Expansion Plan in Argentina

Lithium: Arcadium Lithium Announces Ambitious Expansion Plan in Argentina

Arcadium Lithium, one of the world's leading lithium producers, has unveiled a strategic plan that promises significant growth in the coming years, with Argentina positioned as a key pillar. The company expects to double its sales volumes by 2028 and achieve an adjusted EBITDA of US$1.3 billion, driven by strong global demand for lithium. Paul Graves, the company’s President and CEO, highlighted that the combination of a vertically integrated operational network and a disciplined commercial strategy will maximize the value of each unit of lithium delivered to its customers.
Argentina: For Every 100 Dollars Exported in the Year, the Mining Industry Imported 32 Dollars

Argentina: For Every 100 Dollars Exported in the Year, the Mining Industry Imported 32 Dollars

In July, as detailed in a recent report released by the Secretariat of Mining, companies within Argentina's mining project portfolio achieved a trade surplus of US$134 million, representing a year-on-year decline of 43.3%. This result reflects mining exports totaling US$226 million against imports of US$91 million. As such, the exports of these companies were more than double their imports. In the first seven months of 2024, the cumulative trade balance of these companies showed a surplus of US$1.434 billion, although this represents a 14.9% decrease compared to the same period of the previous year.