Time up: BHP gives up plan to take over its rival Anglo American
LONDON: Mining group BHP Group on Wednesday walked away from its $49 billion plan to take over rival Anglo American, which rejected a last-ditch request for more time, ending for now its six-week pursuit.
BHP's aim was to secure Anglo's prized copper assets in Latin America and increase access to a metal central to the global shift towards clean energy and electric vehicles. But the structure of BHP's deal, which required Anglo to unbundle its South African platinum and iron ore businesses, was a major reason for its collapse.
Anglo had granted BHP a one-week extension until 1600 GMT on Wednesday to its original May 22 deadline to submit a binding offer, after rejecting a third takeover proposal. Under UK rules, BHP cannot return for at least six months, unless there is another offer for the London-listed miner. «While we believed that our proposal for Anglo American was a compelling opportunity to effectively grow the pie of value for both sets of shareholders, we were unable to reach agreement with Anglo American on our specific views in respect of South African regulatory risk and cost,» BHP said.
«We remain of the view that our proposal was the most effective structure to deliver value for Anglo American shareholders, and we are confident that, working together with Anglo American, we could have obtained all required regulatory approvals, including in South Africa,» it added.
After the Australian mining giant's statement, London-listed Anglo said it
