In a dramatic twist for the global mining industry, BHP Group has abruptly terminated its latest attempt to acquire rival Anglo American. This sudden withdrawal comes just over a year after BHP's previous merger advances were firmly rejected, and it effectively clears the way for Anglo American's planned blockbuster combination with Canadian miner Teck Resources.
A Swift Rejection and Strategic Retreat
News broke that BHP had made a fresh takeover approach to Anglo American, proposing a deal structured with a mix of cash and stock. This unexpected move threatened to disrupt Anglo's own strategic manoeuvres, specifically its intention to merge with Teck Resources and create a colossal £39 billion global copper group—a deal still awaiting shareholder approval.
However, Anglo American's board swiftly batted aside BHP's overtures. The company informed its shareholders that, following preliminary discussions, BHP confirmed it is no longer considering a combination of the two mining behemoths. Despite walking away, BHP maintained its belief that a merger would have held strong strategic merit and created significant value for all stakeholders. The company simultaneously expressed confidence in its own, highly compelling organic growth strategy.
Six-Month Ban and a Surprise Return
Under City takeover rules, BHP is now barred from making another bid for Anglo American for six months, barring a material change in circumstances. This development marks the latest chapter in a prolonged corporate saga. Back in 2024, BHP made three unsuccessful attempts to agree on a merger with Anglo American before publicly declaring in October that it had 'moved on'.
Given last year's definitive rebuttal and Anglo's subsequent pivot towards the Teck Resources tie-up, BHP's recent move was met with surprise by market analysts. Andy Forster, a portfolio manager at Argo Investments in Sydney, characterised the attempt as a 'last throw of the dice for BHP'. He expressed his surprise, stating, "I’m a bit surprised that, given the relative performance, that they thought they’re in a position to come back and do another deal and extract value for shareholders."
Implications for the Global Copper Market
The failure of BHP's latest approach solidifies the trajectory for both companies. Anglo American can now focus its efforts on securing shareholder support for its transformative merger with Teck Resources, a deal poised to create a powerhouse in the global copper market. For BHP, the path forward relies on its internal organic growth plans, as it steps back from what would have been one of the mining sector's largest-ever acquisitions.
