Anglo American, on Friday, refused a remarkable $39 billion acquisition proposal from competing mining titan BHP Group (BHP), potentially initiating a fierce contest between bidders capable of reshaping the worldwide industry. The British multinational mining company declared the offer to be grossly inadequate in assessing its worth while criticising the highly unappealing conditions for its shareholders, considering their uncertainty and intricacy.
BHP’s offer, reliant on Anglo American separating its South African iron ore and platinum operations, signifies BHP’s gamble on the surge of copper demand. This comes in the wake of the global transition from fossil fuels to more environment-friendly renewable energy initiatives and electric vehicles.
Should the acquisition of Anglo American be successful, it would propel BHP to ascend to the highest rank among copper producers, with control over 10% or more of global production, based on data from Bloomberg. The proposal for Anglo American aligns with BHP's continued intent to enlarge its copper operations, following its purchase of Australian miner OZ Minerals the previous year.