Sydney, (APP – UrduPoint / Pakistan Point News – 25th Apr, 2024) Australian mining giant BHP confirmed on Thursday a $38.8 billion takeover bid for British rival Anglo American, a colossal deal with the potential to fundamentally reshape the sector.
The combination would bring together the strengths of BHP and Anglo American in an optimal structure, the statement said.
London-based Anglo American earlier confirmed that its board was reviewing an offer from BHP but did not disclose the price.
There can be no certainty that any offer will be made nor as to the terms on which any such offer might be made, Anglo American said in a statement.
Pending any further announcements Anglo American shareholders should take no action.
BHP’s offer would first hinge on Anglo American splitting off its platinum and iron ore holdings in South Africa.
BHP has signalled in recent years its growing appetite for copper, an increasingly in-demand metal that is poised to play a key role in global energy transitions.
The International Energy Agency lists copper — commonly used in electrical wiring — as of high importance for the development of solar panels, electricity networks, electric vehicles and rechargeable batteries.
Australian renewable energy finance expert Tim Buckley was not convinced the takeover bid was a wise move.
I question what the takeover brings aside from complexity, he told AFP before the bid was confirmed.
Both BHP and Anglo American have been hit by global downturns in nickel, which is essential for the manufacture of stainless steel and rechargeable batteries.
BHP reported an 86 percent slump in its half-year net profit this year, caused by a write-down of its nickel assets and costs related to a 2015 Brazilian mining disaster.
