BHP to Consider Improved Anglo Proposal After Bid Was Rejected

Dinesh Nair and Thomas Biesheuvel
·1-min read
BHP to Consider Improved Anglo Proposal After Bid Was Rejected

(Bloomberg) -- BHP Group is considering making an improved proposal for Anglo American PLC after its $39 billion initial offer was rejected by the London-listed miner, according to people familiar with the matter.

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The Australian miner is discussing with its advisers a revised proposal for Anglo American in the coming weeks, the people said, asking not to be identified as the matter is private. BHP is also in the process of discussing the merits of a deal with its key shareholders and trying to convince them to back the offer, the people said.

Read more: BHP’s $39 Billion Bid for Anglo American Was Years in the Making

BHP’s deliberations are ongoing and it hasn’t made a final decision on the size and structure of the new proposal, the people said.

A BHP spokesman declined to comment.

Anglo this week rejected an all-share deal in which it would spin off controlling stakes in South African platinum and iron ore companies to its shareholders before being acquired by BHP. The total per-share value of the non-binding proposal was about £25.08, BHP said. Anglo Chairman Stuart Chambers called the proposal “opportunistic” and said it failed to value the company’s prospects.

A tie-up with Anglo would give BHP roughly 10% of global copper mine supply ahead of an expected shortage that many market watchers have predicted will send prices soaring. If successful, the transaction would mark a return to large-scale dealmaking for BHP.

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