BHP bins multi-billion-dollar Anglo American merger 

BHP (ASX: BHP) has confirmed it is no longer considering a takeover offer for Anglo American following preliminary discussions with directors. 

This follows BHP’s unsuccessful formal $75b takeover offer for the smaller company made last year, which Anglo rejected due to its complex structure and value risks. 

Anglo American is currently amid merger of equals talks with Canadian copper giant Teck Resources — with Anglo shareholders set to vote on the proposal on December 9. 

If the proposal is approved, Anglo-Teck is set to become one of the top five copper producers in the world, with combined production from its mines in Chile, Peru and Canada to be about 1.2mt, predicted to reach 1.35mt by 2027. 

If Anglo American was to pursue the BHP deal, it would have to pay Teck Resources a $510m [US$330m] break fee.  

Anglo American currently has a market value of about $65b, while BHP, the world’s largest mining company, is valued at more than $200b. 

Under the UK Takeover Code, BHP is now barred from making a bid for six months, unless there is a new bid from another suitor or the miner gains Anglo American’s approval. 

BHP and Anglo American were contacted for comment.