Anglo American Rejects Renewed BHP Takeover Bid
Mining giant spurns rival's proposal, signaling confidence in its standalone strategy and placing focus on its own strategic overhaul.
Anglo American plc (OTC: NGLOY) has rejected a renewed takeover proposal from rival mining giant BHP Group (NYSE: BHP), signaling the board’s enduring confidence that a tie-up undervalues its rich portfolio of assets. The move reiterates the company's stance from a previously spurned bid, setting the stage for a potentially protracted battle for control over some of the world's most coveted copper mines.
The latest chapter in the takeover saga sees Anglo American's board standing firm, convinced that BHP’s offer does not reflect the intrinsic value or future prospects of the company. This rejection follows a high-stakes pursuit in 2024, where BHP’s final offer valued the London-based miner at approximately $49 billion, an offer that was ultimately rebuffed for being too low and structurally complex, according to company statements.
At the heart of the corporate clash is copper, a critical metal for the global transition to renewable energy and electric vehicles. A successful acquisition would make BHP the world's largest copper producer, controlling an estimated 10% of global output. Anglo American holds premier copper assets in Chile and Peru, which are central to BHP's strategic ambitions to consolidate its dominance in the sector.
Shares of Anglo American’s U.S.-listed ADRs (NGLOY) traded at $17.95 in recent sessions, pushing its market capitalization to nearly $38 billion. Meanwhile, BHP, a titan in the industry, boasts a market capitalization of over $136 billion. The valuation gap underscores BHP's capacity to sweeten its offer, though investors are now watching to see if it will engage in a hostile bid or walk away for a second time.
Adding another layer of complexity to the situation is Anglo American's own strategic maneuvering. The company is actively pursuing a merger with Canadian miner Teck Resources, a deal that would bolster its own copper and coal operations. A shareholder vote on the Teck deal is slated for December 9, creating a tight deadline for any revised offer from BHP. A successful bid from BHP could reportedly trigger a substantial break fee of over $300 million payable by Anglo American, a detail that complicates negotiations.
In a statement following its previous rejection, Anglo American’s board expressed concern over the structure of BHP’s proposal, which required the demerger of its significant South African platinum and iron ore businesses. The board argued this would create an unwieldy process and place undue risk on its shareholders.
Analysts have maintained a cautious stance on Anglo American, with a consensus 'Hold' rating on the stock. Many view 2025 as a pivotal “transition year” for the company as it works to simplify its sprawling portfolio, including a planned demerger of its Anglo American Platinum (Amplats) unit and the sale of other non-core assets. According to data from the Financial Times, the median 12-month price target for Anglo American's London-listed shares sits at GBX 2,990.55, suggesting analysts see modest upside from its current price.
BHP’s renewed interest, even after declaring it had “moved on” from the failed 2024 bid, underscores the immense strategic value placed on securing a dominant position in the copper market. The global push for decarbonization is expected to create a significant supply deficit for the metal in the coming decade, making high-quality, long-life copper mines exceptionally valuable.
For now, Anglo American's leadership appears determined to chart its own course, betting that its planned restructuring and the Teck merger will deliver superior value to shareholders than a sale to its largest competitor. The market now awaits BHP’s next move: raise the offer, attempt a hostile takeover, or concede that Anglo American is the one that got away.