Zhitong Financial APP learned thatPokerhandstexasholdem, BHP (BHP)PokerhandstexasholdemUs) said Anglo American rejected its revised offer on May 13. It is reported that BHP Billiton revised Anglo American's all-share offer on May 7, valuing it at about 34 billion pounds ($43 billion). BHP said it was disappointed by Anglo American's decision not to approach it.
On April 25th BHP made an offer for rival Anglo American. BHP values Anglo at 31.1 billion pounds ($38.8 billion), a 15 per cent premium to its market capitalization of 27 billion pounds ($33.7 billion).
If the deal succeeds, it will mark the completion of BHP's first large-scale acquisition in years. Over the past few years, under the leadership of Mike Henry, chief executive, BHP has rekindled its interest in transformational acquisitions. Anglo American said BHP's condition was that Anglo first spun off its platinum and iron ore operations in South Africa.
Anglo American has a large copper business in South America and a deep business in South Africa, including platinum, iron ore and diamonds, and has an 85 per cent stake in de Beers, the world-renowned king of diamonds. In recent years, as an important metal for energy transformation and electrification, the demand for copper ore is rising, and the price is also rising when the supply is tight. However, Anglo American's share price has lagged behind its competitors over the past year, mainly because of a big plunge in its diamond business.
Anglo has been seen as a potential acquisition target by big mining companies because of its shrinking market capitalisation, especially at a time when most companies in the industry are eager to increase copper reserves and production. Although Anglo American has an "attractive" copper business, its complex internal structure and commodity mix, especially its operations in South Africa other than copper, have deterred some buyers.