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BHP has made a new approach for rival Anglo American in a move that would create a mining giant and disrupt Anglo’s planned $57bn combination with Teck Resources.
The renewed interest in Anglo came in recent days, according to people familiar with the approach, more than a year after BHP walked away from a £39bn offer following fierce opposition from Anglo’s board.
BHP’s move comes as shareholders of Anglo and Teck prepare to vote on their combination on December 9.
The nil-premium, all share combination of Anglo and Teck has been endorsed by both boards, which say big synergies will be unlocked by merging operations at their neighbouring copper mines in Chile.
However, the Canadian government, which has the ability to block the transaction, has been more circumspect, with officials saying they want to see more proof that the deal will benefit Canada.
Shares in London-listed Anglo, a producer of copper and iron ore, have soared 67 per cent since the beginning of 2024. The company has been undergoing a radical restructuring under which it has spun out its coal, nickel and platinum divisions, and will soon spin out its diamonds business.
The opportunity to snap up Anglo’s extensive copper assets was a key reason behind the last approach by BHP, the world’s largest miner by market capitalisation. The iron ore producer is working to diversify its portfolio towards high-growth commodities such as copper and potash.
Any bid for Anglo would need to be at a healthy premium to its current £27 share price to successfully disrupt the combination with Teck, according to advisers.
Under the terms of the Anglo-Teck deal, either side is allowed to entertain offers from third parties but would have to pay a $330mn break fee if accepting a competing offer.
A fresh approach from BHP could also trigger other big mining deals, analysts say, as the mining majors jockey to gain the best position in copper, a metal crucial to the energy transition.
Market speculation has been building about whether London-listed Rio Tinto, whose new chief executive Simon Trott took up his post in August, could also enter the fray as an interloper in the Anglo-Teck deal.
BHP’s renewed approach was first reported by Bloomberg.
Anglo and BHP declined to comment.
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