Anglo American Rejects 3rd bid from BHP – They Have Just 2 Days Left! De Beers is on the Block!
Gary Roskin –
Roskin Gem News Report –
While the press has been relatively quiet this past week about BHP’s attempted bid for Anglo American, that’s not the case behind the scenes. “The world’s biggest listed mining group (BHP) now has until May 29 to make a firm bid for Anglo American or it will be forced to walk away for at least six months under the UK’s takeover rules after it was granted a one-week extension on Wednesday.” Is BHP working to come up with a final offer before time runs out on Wednesday the 29th? Reportedly, Anglo has been pushed to continue listening, but listening to what – or to whom? Some are reportedly in favor of accepting a potentially higher bid, and divest some of their portfolio (De Beers, etc…), while others think Anglo is moving too fast – a knee jerk reaction to a hostile takeover. Read on.
For now, here’s what we know…
CNBC
Miner Anglo American Rejects Third Takeover Offer from rival BHP Group as Talks Deadline Extended
MAY 22 2024
Karen Gilchrist@_KARENGILCHRIST
The Australia-based mining and metals giant made two prior nonbinding offers for Anglo as it seeks to shore up its dominance in the copper industry given the metal’s key role in the energy transition and products such as electric vehicles, power grids and wind turbines.
The combined companies would form a behemoth in copper mining and the world’s largest player in the space, supplying 10% of global output, according to a Reuters analysis.
Anglo rejected both previous offers, however, saying they “significantly undervalue the company and its future prospects.”
De Beers
Anglo later announced plans to spin off its highly prized De Beers diamond unit, as well as its steelmaking coal, nickel and platinum businesses, as part of a sweeping restructuring of its 107-year-old business.
Anglo CEO Duncan Wanblad said the restructuring was part of existing efforts to “streamline the business and provide greater value to shareholders.”
The takeover offensive paves the way for a return of mega-deals after more than a decade of quiet in the mining industry. Copper’s recent rally has also heightened demand in the space, with BHP rival Rio Tinto similarly expanding its business in the base metal.
Tap here to read the full CNBC post.
BHP will not relent on structure, value of $49 billion Anglo offer, say sources
By Melanie Burton and Scott Murdoch
May 23, 2024
PERTH/HONG KONG, May 23 (Reuters) – BHP (BHP.AX), opens new tab will stand firm on the structure and value of its latest takeover proposal for Anglo American (AAL.L), opens new tab, focusing instead on allaying its target’s concerns around execution risks over the coming week, sources said on Thursday.
The world’s biggest listed mining group now has until May 29 to make a firm bid for Anglo American or it will be forced to walk away for at least six months under the UK’s takeover rules after it was granted a one-week extension on Wednesday.
De Beers
Last week, Anglo announced plans to either spin-off or sell its less profitable nickel, diamond and platinum businesses to refocus on copper, and to also sell its coal businesses.
In that plan Anglo would need to bear those substantial spin-out costs itself, which would ultimately be borne by its shareholders.
Ready to Pounce
If the deal does not go ahead, Anglo boss Duncan Wanblad will be under pressure to get top dollar for its diamonds business in particular and ensure its demergers proceed without any hiccups, two investors said. One foot wrong and BHP will be ready to pounce, they said.
Here is the rest of the story from Reuters.
Anglo American to sell De Beers, Amplats to fend off BHP’s bid
Anglo American (LON: AAL), the takeover target of mining giant BHP (ASX: BHP), has ceded to pressure from investors, announcing plans to sell some of its legacy assets in an attempt to protect itself from current and future bids.
The sweeping break up plan, disclosed on Tuesday, will see Anglo American sell its diamond business De Beers, its South Africa-based Anglo American Platinum — Amplats — (JSE: AMS) and its steelmaking coal assets.
“We believed that a major reshuffling of Anglo American’s portfolio was inevitable,” said Wood Mackenzie’s James Whiteside, metals and mining corporate research director. “But opting to divest or demerge whole segments of its portfolio does align with the company’s new strategic priorities.”
Others are not big fans of the plan. Analysts at CreditSights said that Anglo’s proposal is not better than BHP’s scheme. They believe the target company assembled the breakup plan in a haste and with scarce details about it.
Tap here to read the full post in Mining.com
