BHP Group, the world’s largest mining company, has abandoned its six-week bid to take over Anglo American for $49-billion.
This comes after three of its proposed offers were rejected.
BHP chief executive Mike Henry they are still of the view that their proposal was the most effective structure to deliver value for Anglo American shareholders.
“While we believed that our proposal for Anglo American was a compelling opportunity to effectively grow the pie of value for both sets of shareholders, we were unable to reach an agreement with Anglo American on our specific views in respect of South African regulatory risk and cost…,” he said.
BHP said it was disappointed that the board of Anglo American decided not to continue discussions to resolve its concerns regarding the implementation of their revised proposal.
“In particular, Anglo American’s assertion that value risk under our proposal would be exclusively for the account of Anglo American shareholders is not accurate,” it said.
“… BHP intended to share in the cost associated with certain conditions that may be imposed as part of South African regulatory approvals. BHP’s revised proposal would have offered immediate value for Anglo American shareholders and would have allowed Anglo American shareholders to benefit from the long-term value created from combining Anglo American and BHP.”
Meanwhile, Anglo American chairperson Stuart Chambers said the company has set out a clear pathway to accelerate the delivery of its strategy and unlock significant value for its shareholders.
“Our shareholders will benefit from value transparency and undiluted exposure to a simpler portfolio of world-class assets, consistently stronger operational performance, and highly attractive growth in copper, premium iron ore and crop nutrients,” he said.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
