BHP Group has made fresh overtures to acquire Anglo American whilst the London-listed miner pursues its own merger with Canada’s Teck Resources, said Bloomberg News on Sunday, citing people familiar with the matter.
The Australian commodities giant approached Anglo American in recent days, the sources told the newswire. Anglo American shares have risen 17% this year to a market value of £31.9bn, whilst BHP is valued at more than $130bn.
Anglo agreed in September to acquire Teck in an all-stock transaction that would create a $50bn copper, zinc and metals producer operating across multiple continents. That deal remains pending, with shareholders of both companies scheduled to vote on 9 December.
The combination still requires regulatory approval in China, the US and Canada. Ottawa is pressing Anglo to strengthen commitments regarding executive and management positions at the proposed Vancouver headquarters as a condition for approving the takeover of Teck, currently valued at approximately $19bn, said Bloomberg.
BHP’s offer is understood to be partly in cash and partly in its shares, said the Financial Times, citing people familiar with the deal. BHP’s share price has declined 20% in the past two years, partly because of lower iron ore prices.
BHP previously attempted to buy Anglo American for $49bn last year before abandoning the pursuit after a five-week public campaign. The 2024 bid, which included conditions requiring Anglo to sell off its South African assets, was widely criticised for being convoluted and tone-deaf, and sparked political opposition in South Africa, said the Financial Times.
New discussions are ongoing with no certainty of reaching agreement, said Bloomberg News.
If a new deal between BHP and Anglo American were pursued, the London firm would be forced to pay a $330m break fee to Teck, as outlined in the merger agreement terms with the Canadian company.
Representatives for both BHP and Anglo American declined to comment.
