Anglo American has confirmed that it received an unsolicited, non-binding and highly conditional combination proposal from BHP, the world’s largest mining company.
It said the proposal comprises an all-share offer by BHP and would be preceded by separate demergers by Anglo American of its entire shareholdings in Anglo American Platinum (Amplats) and Kumba Iron Ore to Anglo American shareholders.
BHP’s offer values Anglo American at £31.1 billion ($38.9 billion).
It offered Anglo shareholders £25.08 a share, including £4.86 a share for Amplats shares and £3.40 a share for Kumba Iron Ore shares.
“The board is currently reviewing this proposal with its advisers,” said Anglo.
“There can be no certainty that any offer will be made nor as to the terms on which any such offer might be made.”
BHP is expected by not later than 5.00 p.m. on 22 May 2024, to either announce a firm intention to make an offer for Anglo American or announce that it does not intend to make an offer.
Independent diamond mining analyst Paul Zimnisky said BHP’s offer for Anglo American, De Beers’ parent company was historical.
“As far as mining news goes, it doesn’t get too much bigger than this…,” he wrote on X.
BHP said Anglo American's other high-quality operations including its diamond business would be subject to a strategic review post-completion.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
