BHP has abandoned its latest attempt to acquire rival miner Anglo American after being rebuffed for a second time, ending a last-minute effort to disrupt Anglo's planned merger with Canadian firm Teck Resources.
The Australian mining giant confirmed on Monday that it had held preliminary discussions with FTSE 100-listed Anglo but is now “no longer considering a combination of the two companies” and will focus on its own portfolio. BHP stated that while it still believes a merger would have had strong strategic merits, it is confident in its organic growth strategy.
The failed overture comes more than a year after BHP abandoned a £39bn bid for Anglo, which faced fierce opposition from Anglo's board due to conditions requiring the sale of South African interests. Under City takeover rules, BHP is blocked from making another offer for six months unless there is a significant change in circumstances.
Anglo's vast copper reserves have driven interest, as copper is essential for low-carbon technologies like solar farms and electric cars. Anglo 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.
The impending $53bn (£39bn) merger between Anglo and Teck requires regulatory approval in China, the US and Canada. Kathleen Brooks of XTB noted that the merger is partly designed to fend off other takeover attempts, adding that such activity suggests limited concern about a global economic downturn.
