BHP Said to Consider Improved Anglo American Bid
[CC may contain inaccuracies] What are the next steps?
Yeah, well, important to say off the bat
that there’s no official comment from
BHP or Anglo, so this information is,
according to sources, people familiar
with the matter.
But of course it was last week BHP made
this all share offer $39 billion for
Anglo.
And on Friday, Anglo rejected it, saying
it’s opportunistic fails to value its
prospects.
So where do we go from here?
According to UK takeover law, May 22 is
the next dates.
BHP has got until then to table a fresh
offer or walk away.
But it’s not hard to understand the
appeal here.
We’ve been talking all week about copper
prices are surging when knocking on the
door of 0,000 a tonne.
Demand could soar as well.
I mean, you take an electric vehicle
needs four times the amount of copper as
a traditional car.
So BHP sees a lot of growth here and
it’s much cheaper to just go out and buy
an asset obviously, than go looking for
a new mine and spend billions developing
it.
So, Paul, if BHP does come back to the
table with a better offer, is that going
to be enough, do you think, to sort of
flush out some of the rival bidders?
Yeah, that’s the next thing we could be
watching for, because it’s not beyond
the realm of imagination to imagine that
the likes of Rio Tinto might suddenly
become interested or Glencore is another
potential suitor for these assets.
Other miners will all be thinking the
same thing when it comes to copper
demand.
Glencore, for its part, is already doing
a major deal for $9 billion of coal
mines in Canada.
Barrick Gold would be another potential
candidate.
It is, of course, a gold miner, but
copper and gold deposits are usually
found together and Barrick’s already
expressed some interest in diversifying
into copper as well.
And Anglo, It’s a logical target really.
It’s been having a tough run.
Diamond prices are down, platinum prices
are down.
Last December it announced a production
downgrade for its copper as well and we
saw shares falling 20% in December.
Contrast that to the past couple of the
last two days of last week where we saw
shares gaining the 20% on news of this
potential offer.
BHP Group is said to be weighing up an improved takeover bid for rival miner Anglo American Plc after its $39 billion initial offer was rejected. Paul Allen reports on Bloomberg Television.
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1 Comment
Potash mining is a healthy forward looking revenue stream here