BHP has withdrawn its renewed takeover bid for Anglo American after Anglo rejected the approach, marking the conclusion of the latest BHP takeover bid.
Both companies plan to focus on their current strategies, with Anglo preparing for a shareholder vote on its proposed merger with Teck Resources, reported Bloomberg.
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BHP said it had held preliminary talks with Anglo but stated it is “no longer considering a combination of the two companies” and will instead focus on its existing portfolio.
This announcement followed a Bloomberg report that BHP, which failed in an approach to Anglo last year, had made a new approach in recent days.
According to people familiar with the situation, Anglo reviewed the latest proposal and decided it was not superior to the planned combination with Teck.
The individuals requested anonymity as the discussions were private, said the news agency.
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By GlobalDataThe renewed BHP Anglo American takeover bid reflects industry pressure to add scale and growth, particularly in copper, where supply is declining and demand is projected to increase as a result of global electrification.
The latest BHP overture arrived just weeks before Anglo and Teck shareholders scheduled time to vote on their proposed deal, which would create a company worth more than $60bn (£45.72bn), making two sought-after, copper-rich targets less accessible to competitors.
BHP’s original proposal required Anglo to partially break itself up. The latest plan was structured more simply, and Anglo has since exited its South African platinum business, potentially making it more appealing to BHP.
However, since BHP’s last approach, its shares have declined in Australian trading, while Anglo’s have increased by approximately 11% in London.
The Teck deal has meanwhile received broad support from Anglo investors.
In its statement, BHP stated that it continues to believe that a merger with Anglo American would have offered strong strategic benefits and created substantial value for all stakeholders.
At the same time, BHP claims to be confident in the highly compelling potential of its own organic growth strategy.
BHP’s latest proposal was advised by Lazard, UBS Group and Barclays Bank.
Anglo declined to comment to Bloomberg.
Shareholders of Teck and Anglo are set to vote on 9 December, and the transaction still requires regulatory approval in China, the US and Canada.
