Anglo American has turned down a second takeover offer from BHP worth £34 billion, asserting that the bid does not adequately value the company. The rejection, following a previous £31 billion bid, has created tension between the two mining giants, with potential implications for Anglo’s South African operations and London Stock Exchange listing.

Anglo American has declined a second takeover offer from Australian mining company BHP, stating the £34 billion bid undervalues the firm. The rejection of this offer, which followed a previous £31 billion bid, has led to dissatisfaction from BHP, expressing disappointment at Anglo’s non-engagement. The decline occurred amidst a backdrop of a potential encounter between BHP’s CEO Mike Henry and Anglo’s Duncan Wanblad at a mining conference in Miami on May 13, 2024.

BHP’s revised proposal included increasing Anglo shareholders’ stake in the combined entity from 14.8% to 16.6%. However, the offer was still £6 billion short of the £40 billion analysts believe necessary to seal the deal. A significant sticking point in the negotiations has been BHP’s demand for Anglo to divest its South African operations, a move facing resistance from the South African government, which holds a substantial share in Anglo.

The situation is further complicated by potential interest from other mining competitors such as Glencore and Rio Tinto. Analysts suggest that the acquisition could lead to Anglo American’s exit from the London Stock Exchange, with BHP primarily targeting Anglo’s lucrative copper mines in Chile and Peru. Additionally, there have been indications that BHP might sell off Anglo’s diamond business, De Beers, and that the future of the Woodsmith mine in North Yorkshire could be uncertain.

This rejection reflects broader shareholder and stakeholder feedback, conveyed promptly to investors by Anglo’s management, possibly in response to the burgeoning takeover interest.

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