Just hours ahead of its deadline to make a firm offer for its peer, BHP has asked Anglo American for more time to evaluate the merits of a merger.
Under UK takeover rules, Anglo has to agree to extend the deadline set by the takeover panel. It did that last week when the two parties agreed to further talks to hash out the details of a merger.
BHP said today it welcomed the initial extension as it “provided the opportunity to engage with Anglo American about its concerns regarding BHP’s proposal.”
Since then, the company has continued to work with its target, but it looks as if the two sides have failed to come to any agreement as of yet.
BHP said it had “proposed a range of socioeconomic measures intended to address Anglo American’s concerns regarding our proposed transaction structure,”
It added that these would provide greater economic benefits to South Africa than Anglo American’s Accelerating Value Delivery plan, which the latter group outlined shortly after BHP’s initial approach.
Under Anglo’s own plan, the company has said it would divest its coal, nickel and platinum businesses. Anglo also said it would sell or demerge its 85 per cent stake in De Beers.
BHP said it believed its approach would be better for all stakeholders, but the two sides have not agreed on how to proceed.
As such, the company said it “believes a further extension of the deadline is required to allow for further engagement on its proposal.”
“This announcement does not amount to a firm intention to make an offer and there can be no certainty that an offer will be made. There is no certainty that any form of agreement or transaction will be reached or concluded,” the statement added.
The press release was issued by BHP “without prior agreement or approval of Anglo American.”
This is a developing story.