Anglo American, the London-listed mining giant, has rejected a £31bn all-share takeover proposal from Australian rival BHP, calling it 'highly unattractive' and 'opportunistic'. The board unanimously dismissed the offer, stating it 'significantly undervalues' the company and its future prospects.
The proposed deal, which would have been one of the largest in the global mining sector in a decade, required Anglo American to complete two separate demergers. Anglo's chair, Stuart Chambers, criticised the structure, noting that potential risks would fall mainly on Anglo's investors.
Shareholders, including Legal & General Investment Management and Abrdn, voiced opposition within hours of the proposal. Anglo also faces pressure from activist fund Elliott Investment, which holds a roughly $1bn stake. South Africa's mining minister, Gwede Mantashe, signalled opposition, and the state asset manager, Public Investment Corporation, holds about 7% of Anglo's shares.
Anglo American, valued at about £34bn, has long been seen as a takeover target due to its lagging share price. The BHP offer came amid a race among miners for copper, crucial for clean energy. A foreign takeover would deal a blow to London's financial market, following BHP's move of its primary listing to Australia in 2022.
Under takeover rules, BHP must make a firm offer by 22 May or walk away.
