BHP stunned as Anglo American rejects renewed takeover bid

BHP confirms that it is no longer considering a combination with Anglo and Teck Resources

- TAWANDA KAROMBO

BHP executives were left surprised after Anglo American rejected a fresh acquisition proposal that the Australian mining giant believed offered improved terms and better reflected the value of the London-listed group.

On Monday, BHP confirmed it had abandoned plans to pursue a combination with Anglo American, whose shareholders are expected to approve the company’s tie-up with Canada’s Teck Resources next month.

“Following preliminary discussions with the Board of Anglo American, BHP Group confirms that it is no longer considering a combination of the two companies,’ BHP said on Monday.

The company, said mining industry sources, had timed its latest offer to disturb Anglo American's tie up process with Teck Resources.

“It was always clear that BHP would come back for Anglo American sooner than later. They were stunned being rejected and now have to focus on anew strategy pivoting on internal growth and acquisition opportunities as they come because they have the financial muscle for that,’ said a senior mining executive in South Africa.