Anglo American has rejected a second takeover bid from BHP – which was worth £34bn – it has been confirmed.
The FTSE 100-listed mining company received a first offer in April which valued it at £31bn – a 13 per cent premium to Anglo’s share price at the time the bid was announced.
The second bid had been widely expected ahead of the May 22 deadline.
The business has been conducting a strategic review of its business since the middle of 2023, examining its operations on a mine-by-mine basis in to assess how it can recover the ground lost on its competitors in recent years.
The news comes after five of Anglo’s largest shareholders privately urged the company to speed up the review’s publication, according to Bloomberg.
In a statement, BHP said it was “disappointed that the Anglo American board has chosen not to engage with BHP with respect to the revised proposal and the improved terms”.
Anglo American deal a “unique and compelling opportunity”
BHP chief executive Mike Henry said:”BHP put forward a revised proposal to the Anglo American board that we strongly believe would be a win-win for BHP and Anglo American shareholders.
“We are disappointed that this second proposal has been rejected.
“The revised proposal represents a 15 per cent increase in the merger exchange ratio and increases Anglo American shareholders’ aggregate ownership in the combined group to 16.6 per cent from 14.8 per cent in BHP’s first proposal.
“BHP and Anglo American are a strategic fit and the combination is a unique and compelling opportunity to unlock significant synergies by bringing together two highly complementary, world class businesses.
“The combined business would have a leading portfolio of high-quality assets in copper, potash, iron ore and metallurgical coal and BHP would bring its track record of operational excellence to maximise returns from these high-quality assets.
“The combined business would also have the balance sheet strength, capital discipline and operational capability to execute the attractive pipeline of growth options in BHP and Anglo American’s portfolios.
“In putting forward a revised proposal, we have been guided by our capital allocation framework and our view of the fundamental value of Anglo American and BHP.
“The combination is consistent with BHP’s strategy and the revised proposal is underpinned by a focus on delivering long term fundamental value.”