Anglo American Rejects BHP's "Opportunistic" £31.1 Billion Takeover Offer
Quote from VATcal on 26/04/2024, 20:11Anglo American has firmly rebuffed a £31.1 billion takeover bid from rival mining giant BHP Group, branding it a significant undervaluation of the company and its future prospects. BHP's proposed megadeal aimed to create a global mining behemoth, controlling roughly 10% of the world's copper production. However, the offer has faced criticism from several quarters.
Analysts suggest BHP may need to sweeten the deal to gain traction. Political opposition in South Africa and investor concerns regarding BHP taking advantage of Anglo American's current share price have cast a shadow over the bid.
Anglo American's share price remained flat at around 2,559.5p on Friday morning, following a surge yesterday on the news of the BHP offer. BHP's shares, however, dipped 1.1% to 2,285p.
Stuart Chambers, Chairman of Anglo American, dismissed the bid as "opportunistic and failing to value Anglo American's prospects." He further argued that the deal would significantly dilute the value proposition for Anglo American shareholders compared to their BHP counterparts.
Chambers expressed confidence in Anglo American's ability to generate significant value from its high-quality asset portfolio, strategically aligned with the ongoing energy transition and other key market trends.
Anglo American has firmly rebuffed a £31.1 billion takeover bid from rival mining giant BHP Group, branding it a significant undervaluation of the company and its future prospects. BHP's proposed megadeal aimed to create a global mining behemoth, controlling roughly 10% of the world's copper production. However, the offer has faced criticism from several quarters.
Analysts suggest BHP may need to sweeten the deal to gain traction. Political opposition in South Africa and investor concerns regarding BHP taking advantage of Anglo American's current share price have cast a shadow over the bid.
Anglo American's share price remained flat at around 2,559.5p on Friday morning, following a surge yesterday on the news of the BHP offer. BHP's shares, however, dipped 1.1% to 2,285p.
Stuart Chambers, Chairman of Anglo American, dismissed the bid as "opportunistic and failing to value Anglo American's prospects." He further argued that the deal would significantly dilute the value proposition for Anglo American shareholders compared to their BHP counterparts.
Chambers expressed confidence in Anglo American's ability to generate significant value from its high-quality asset portfolio, strategically aligned with the ongoing energy transition and other key market trends.
