BHP abandons last ditch bid for Anglo American

BHP pulled out of a last ditch bid for Anglo American just two weeks before shareholders were scheduled to vote on Anglo’s $60bn merger with Canada’s Teck Resources.The world’s largest listed miner said on Monday it was no longer seeking a combination after preliminary discussions with Anglo’s board, though it maintained a tie-up would have offered “strong strategic merits”.“It’s a last throw of the dice for BHP,” portfolio manager Andy Forster at Argo Investments said in a Reuters report on Monday. “I’m a bit surprised that, given the relative performance that they thought they’re in a position to come back and do another deal and extract value for shareholders.”“There’s probably a handful of times when assets like this are up for sale, so BHP may as well assess if the option is open. But it does look a little messy,” said Kaan Peker, analyst with RBC in Sydney.BHP remains confident in its organic growth strategy despite the failed approach, said Reuters. Under UK securities regulations, the Australian miner cannot make another bid for six months, it added.BHP sought to expand its copper operations through Anglo, viewing the metal as essential for energy transition. The company already ranks as the world’s biggest copper producer but faces losing that position without major new projects.The withdrawal precedes December 9 votes by Anglo and Teck shareholders on creating Anglo Teck, a copper producer with significant development projects in Chile and Peru.Anglo’s shares have gained 16% this year compared with BHP’s 2% rise.BHP previously made three unsuccessful approaches for Anglo last year, with a final $49bn  offer rejected in May. Anglo has since restructured operations, exiting its South African platinum division and implementing changes aimed at improving shareholder returns.The Anglo-Teck combination still requires Canadian regulatory approval, with Ottawa pressing for Anglo to redomicile to Canada, said Reuters.The post BHP abandons last ditch bid for Anglo American appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com