The British mining group Anglo American on Friday rejected a “non-binding” full takeover offer by its Australian rival BHP, made the day before for $38.8 billion, deemed too weak and “very unattractive” for the shareholders of the targeted group. .
The board “has reviewed the proposal with its advisors and has concluded that the proposal significantly undervalues Anglo American and its future prospects,” the group said in a statement.
“The proposal further contemplates a structure that the Board considers very unattractive for Anglo American shareholders”, due in particular to the “uncertainty and complexity” surrounding it “as well as the significant execution risks », Continues the press release.
Anglo American’s board says it “unanimously rejected the proposal.”
BHP’s proposal would involve Anglo American spinning off its platinum and iron ore operations in South Africa.
The South African Minister of Mineral Resources, Gwede Mantashe, told the Financial Times Thursday that he opposed the offer because his country’s experience with BHP was “not positive” — although he clarified that this was not an official government position.
“We do not comment on market activity and the process is only just beginning,” a spokesperson for the South African president responded to AFP on Friday.
The acquisition, if it materializes, would represent one of the biggest marriages in the sector in years and would create the main producer of copper in the world, a key metal for the energy transition, allowing numerous industrial uses such as the composition of batteries of electric vehicles.
Copper at more than $10,000 per ton
Copper represents “30% of Anglo American’s total production” and the board “believes that Anglo American shareholders should benefit from significant appreciation in (the company’s) value that we expect” in the future, argued Stuart Chambers, chairman of the board of directors of Anglo American, quoted in the press release.
“BHP’s proposal is opportunistic and does not properly assess Anglo American’s prospects,” he added.
On Friday, the price of a tonne of copper exceeded $10,000 per tonne for the first time since April 2022 on the London Metal Exchange (LME), driven by exploding demand and struggling supply.
BHP, whose market valuation reaches around $148 billion, offered Thursday 25.08 pounds per Anglo American share.
The proposal caused the title of the British group to soar by more than 16% on the London Stock Exchange on Thursday in one session.
“The combination of the two companies would place the strengths of BHP and Anglo American in an optimal structure,” BHP argued in its press release on Thursday, also believing that “Anglo American would bring assets and strong growth potential.”
Anglo American called on its shareholders on Friday to “take no action” regarding BHP’s proposal, further recalling that there “can be no certainty that a firm offer will be made” by its rival.