Anglo American board of directors has firmly rejected BHP Group’s unsolicited non-binding offer to purchase it for $38.9 billion, stating it “significantly undervalues” the company.
“In addition, the proposal contemplates a structure which the board believes is highly unattractive for Anglo American’s shareholders, given the uncertainty and complexity inherent in the proposal, and significant execution risks,” Anglo said in a statement.
“The board has therefore unanimously rejected the proposal.”
Anglo’s chairman Stuart Chambers pointed out that Anglo was well positioned to create value from its portfolio of assets that were aligned with the energy transition and other major demand trends.
"With copper representing 30% of Anglo American’s total production, and with the benefit of well-sequenced and value-accretive growth options in copper and other structurally attractive products, the board believes that Anglo American’s shareholders stand to benefit from what we expect to be significant value appreciation as the full impact of those trends materialises," he said.
Yesterday Anglo American reported that it has received a 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.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
