BHP Makes All-Share Buyout Proposal for Anglo American
British multinational miner Anglo American has received an all-share buyout proposal from the world's largest listed mining company, Australia's BHP Group. The deal, if agreed upon, would give BHP access to more copper, potash, and coking coal, all of which are considered strategic commodities for the clean energy transition.
Anglo American, with a market capitalization of $36.71 billion, owns mines in countries including Chile, South Africa, Brazil, and Australia. BHP, with a market capitalization of about $149 billion, is best known for mining iron ore, copper, nickel, and coking coal.
The proposal comes as BHP chair Ken MacKenzie approaches the final stretch of his nine-year term at the miner. Anglo American, on the other hand, has seen a fall in demand for most of the metals it mines and has recently embarked on a review of assets.
The global mining sector has seen a recent slew of mergers and acquisitions despite rising concerns around the economic outlook of China, one of the world's largest metals buyers. Both BHP and Anglo American have identified potash as an important business that would complement their mining operations as food demand grows.
If the deal goes through, it would be the second major acquisition for BHP in about a year after its 2023 purchase of Oz Minerals. It would also trigger a wave of transactions for any unwanted assets such as iron ore, nickel, and diamonds.
Under UK takeover rules, BHP has until May 22 to make a firm offer. The Anglo American board is currently reviewing the proposal.