Anglo American responds to $59b BHP offer

The proposal values Anglo American at $59.57b.
The proposal values Anglo American at $59.57b.

Anglo American has confirmed it has received an unsolicited, non-binding and highly conditional proposal from BHP (ASX: BHP).

BHP confirmed that on April 16, 2024, it made a proposal to Anglo American’s board of directors comprising an all-share offer for Anglo American.

Under the proposal, Anglo American shareholders would receive 0.7097 BHP shares for every Anglo share, plus ordinary shares in Anglo American Platinum and Kumba Iron Ore.

The deal represents a value of $48.04 (£25.08) per Anglo American share, $9.31 (£4.86) in Anglo Platinum shares and $6.51 (£3.40) in Kumba shares, valuing Anglo American’s share capital of $59.57b (£31.1b).

The proposal is subject to customary conditions, including completion of due diligence to BHP’s satisfaction.

The statement reads, “The combination would bring together the strengths of BHP and Anglo American in an optimal structure.”

“The combined entity would have a leading portfolio of large, low-cost, long-life Tier 1 assets focused on iron ore and metallurgical coal and future facing commodities, including potash and copper.”

The offer would increase BHP’s exposure to future facing commodities, complementing its iron ore and metallurgical coal portfolios and provide Anglo American’s value adding copper growth options.

The board of Anglo American is currently reviewing this proposal but has advised there is no certainty that any offer will be made.