Anglo American has rejected BHP’s £31.1 billion ($39 billion) takeover offer, reported Reuters, for significantly undervaluing its rival. The mining giant has until May 22 to make a binding bid.
“The BHP proposal is opportunistic and fails to value Anglo American’s prospects,” Anglo Chairman Stuart Chambers said in a statement, adding that it diluted the value upside for Anglo’s shareholders relative to BHP’s.
The news agency said Anglo American started a strategic review of its assets in February in response to a 94% fall in annual profit and a series of writedowns caused by lower commodity demand.
Much of the focus of BHP’s offer has been on copper. If a deal goes through, it would create the world’s biggest copper miner, which would account for about 10% of global output of the in-demand metal. Additionally, it would be among the top 10 largest deals for the sector ever, according to Reuters.
Source: Reuters