Anglo American has rejected a revised acquisition offer from BHP, valuing the mining conglomerate at nearly $43 billion, for the second time. The new proposal, disclosed on May 7, increased the merger exchange ratio, granting Anglo American shareholders a larger aggregate ownership in the combined group of 16.6%. Despite the improved offer, Anglo American’s board remains unconvinced, concerned that the deal would prejudice shareholders. Key sticking points include BHP’s insistence on the demerger of Kumba Iron Ore and Anglo American Platinum (Amplats) before the acquisition, believed by Anglo American’s board to undervalue the company’s assets and to introduce significant execution risks and structural complexities. BHP’s CEO Mike Henry, who recently engaged with South African stakeholders to muster support for the bid, expressed disappointment in the rejection. However, the Anglo American board remains firm in its position after consulting with various shareholders and stakeholders. BHP maintains that the standalone presence of Amplats and Kumba in South Africa would continue to benefit the country’s mining industry.

Mining and Metals, Mergers and Acquisitions,South Africa, Australia, United Kingdom

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