Photo by Siphiwe Sibeko (Reuters / Scanpix).
South African mining giant Anglo American has rejected BHP Group’s bid to buy it, calling it opportunistic. The company believes that it is worth more.
BHP’s offer is opportunistic and misjudges Anglo American’s prospects, Stuart Chambers, chairman of Anglo American, was quoted as saying in a company statement.
Such Anglo American reactions were expected. Analysts and some investors in mining companies believe BHP’s offer is far too small to bring the 107-year-old mining company to the negotiating table.
In addition, the South African State Pension Fund, the largest shareholder of Anglo American, also sent negative signals. Yesterday, Gwede Mantashe, the Minister of Oil Mines, said he did not support such a deal.
I disagreed with him, he told Bloomberg. I don’t think Anglo would agree. I didn’t approve if I was on the board.
BHP will now have to improve its position if it is to start negotiations.
As V, Australia-based international mining, oil and gas company and the world’s largest producer of metal ore, BHP Group has submitted an offer to acquire a smaller company in the same segment, Anglo American.
It was proposed to conclude the transaction in shares: Anglo American shareholders will receive 0.7097 BHP shares for each Anglo American share held, as well as for Anglo American Platinum shares.
Anglo American is valued at 31.1 billion. GBP. In response, the share price rose by more than 17% to 2,572 GBX yesterday. On Friday, the price recovered slightly by 0.37% to 2,550.5 GBX.
The deal will put about 10% of the world’s copper supply in the hands of BHP Group just at a time when demand for the metal is expected to be high and prices to rise.
Select the companies and topics you are interested in and we will inform you in a personal newsletter as soon as they are mentioned in Business, Sodra, Registry Center, etc. in altos.
Topic Markets
