BHP Group Ltd (BHP.AX, BLT.L, BBL, BHP) has announced that it will not be advancing with a formal bid for Anglo American plc. (AAUKY.PK, AAL.L), after a request to prolong takeover discussions was declined. The deadline, which had already been extended by a week from the previous cutoff, expired at 5 p.m. London time.
Mike Henry, Chief Executive Officer of BHP, stated, "BHP will not be making a firm offer for Anglo American. BHP is committed to its Capital Allocation Framework and maintains a disciplined approach to mergers and acquisitions."
Henry explained that BHP could not reach an agreement with Anglo American on issues concerning South African regulatory risk and cost. Moreover, BHP was unable to obtain crucial information from Anglo American necessary to mitigate the excess risk they identified.
On May 20, 2024, BHP had presented an increased and final offer ratio to Anglo American's Board of Directors as part of a revised proposal for a potential merger to be implemented through a scheme of arrangement. This final offer ratio represented a total value of £31.11, as announced by BHP on May 22, 2024. This revised proposal followed earlier proposals submitted by BHP to Anglo American's Board on April 16, 2024, and May 7, 2024.
However, Anglo American's Board rejected BHP's revised proposal on May 22, 2024. In response, Anglo American stated on Wednesday that it has outlined a clear strategy to expedite the delivery of its plans and unlock significant value for its shareholders. According to Anglo American, its shareholders will benefit from transparent value and undiluted exposure to a streamlined portfolio of world-class assets, consistently robust operational performance, and highly attractive growth in copper, premium iron ore, and crop nutrients.
