BHP has abandoned its latest attempt to acquire rival miner Anglo American after being rebuffed for a second time. The Australian mining giant confirmed on Monday that it had held preliminary discussions with Anglo, but said it is “no longer considering a combination of the two companies”.
The move comes more than a year after BHP abandoned a £39bn bid for the FTSE 100-listed miner. Anglo is now pursuing a $53bn (£39bn) merger with Canadian company Teck Resources, with shareholders scheduled to vote on the deal on 9 December.
Under City takeover rules, BHP is blocked from making another offer for Anglo for six months unless there is a significant change in circumstances. BHP stated that while it believes a combination would have had strong strategic merits, it is confident in its own organic growth strategy.
Anglo’s vast copper reserves have driven interest from BHP, as the metal is essential for low-carbon technologies such as solar farms and electric cars. Anglo’s shares have risen by more than two-thirds since the start of 2024 and by almost a quarter since BHP’s first offer in May last year.
BHP’s earlier bid was rejected by Anglo’s board due to conditions requiring the sale of its South African business interests. The proposed Teck-Anglo merger still requires regulatory approval in China, the US, and Canada. Kathleen Brooks, analyst at XTB, noted that the merger could trigger further deal activity in the mining sector, despite BHP’s withdrawal.
