Vice President - Metals and Mining Research at Wood Mackenzie
If you're in mining, its hard not to get excited by BHP’s monumental all-share offer for Anglo American. Personally I'd be sorry to see the end of AA, but since when have my feelings mattered?
The deal could once again place BHP as the world’s largest copper miner, surpassing its closest competitor Rio Tinto. The US$40.7 billion deal is conditional upon separate demergers by Anglo American by distribution of its entire shareholdings in Kumba and Anglo American Platinum Limited to Anglo American shareholders.
The impact of this would be massive.
With the larger scale comes competitive advantages, increased equity leverage, and a strategic boost to high-quality iron ore and metallurgical coal production. I can feel steelmakers' anxiety rising.
Find out all the details and read our key takeaways from this deal here: https://okt.to/dqNjeO
If you're in mining, its hard not to get excited by BHP’s monumental all-share offer for Anglo American. Personally I'd be sorry to see the end of AA, but since when have my feelings mattered?
The deal could once again place BHP as the world’s largest copper miner, surpassing its closest competitor Rio Tinto. The US$40.7 billion deal is conditional upon separate demergers by Anglo American by distribution of its entire shareholdings in Kumba and Anglo American Platinum Limited to Anglo American shareholders.
The impact of this would be massive.
With the larger scale comes competitive advantages, increased equity leverage, and a strategic boost to high-quality iron ore and metallurgical coal production. I can feel steelmakers' anxiety rising.
Find out all the details and read our key takeaways from this deal here: https://okt.to/dqNjeO
Anglo American will exit diamond, platinum and coal mining in a massive restructuring designed to fend off a £34 billion ($43 billion) takeover approach from rival BHP Group and turn the miner into a copper giant.
Anglo’s hand was forced by BHP’s bid — which it has twice rejected — but the move also responds to pressure from shareholders to shed less profitable businesses and focus on the copper assets that are the envy of the industry. It leaves a much simpler company — though also a potentially more attractive one to suitors.
The London-listed miner is pinning its hopes on investors supporting its plan — and backing management to deliver it — rather than pushing to accept an offer from BHP. Investors had been demanding Anglo come out with its own plan, and today’s move responds to what some shareholders were calling for.
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w/ Thomas Biesheuvel
Mining giant BHP has made a bold bid to dramatically expand its copper portfolio, launching a takeover bid for $56B British resources giant Anglo American in what could shape up to be one of the biggest global resources deals this year.
Anglo said BHP has no interest in the company’s platinum assets, and any deal would require separate demergers by Anglo American of its entire shareholdings in Anglo American Platinum Limited and Kumba Iron Ore Limited to Anglo American shareholders.
Spinning out AngloPlats and Kumba would also substantially reduce the transaction value for BHP, given the pair delivered about a third of Anglo American’s earnings before interest, tax, depreciation and amortisation in 2023. Anglo American’s global operations booked annual EBITDA of $US10.2bn last year, of which about $US3.7bn came from Kumba and AngloPlats, according to company disclosures.
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A huge potential deal this morning with BHP’s approach for the London listed mining company Anglo American. BHP says its all-share proposal, including shares in two spun off Anglo American divisions, is valued at £25.08 per share, or £31.1bn in total. This would give a premium of 19% over Anglo American’s unaffected share price. However all three shares being offered have already fallen in opening trading, reducing the value on offer. This year we’ve seen plenty of competing activity in UK public takeovers, and the relatively low premium leaves room for a rival bid. Several potential bidders could be attracted to Anglo American’s significant exposure to copper, which is in high demand. #manda#mergersandacquisitions#angloamerican#londonstockexchange
Is this enough for Anglo American to fend of a BHP takeover?
Anglo American Plc plans to exit diamond, platinum, and coal mining in one of the biggest shake-ups in the company’s 107-year history, as the miner seeks to fight off a takeover approach from its bigger rival BHP Group.
Anglo said Tuesday that it plans to demerge or sell its De Beers diamond business, separate its Anglo American Platinum Ltd. unit and sell its coking coal mines in Australia. It will also slow spending on a giant fertilizer mine in England.
While Anglo has been working on a turnaround plan since the middle of last year, it’s been forced to accelerate the process after BHP proposed a takeover last month. So far Anglo has rejected two proposals from BHP — the latest worth £34 billion ($43 billion) — saying they undervalue the company and the structure is unworkable.
Anglo is pinning its hopes on investors supporting its plan — and backing management to deliver it — rather than pushing to accept an offer from BHP. Investors had been demanding Anglo come out with its own plan.
Senior Reporter, Energy and Commodities at Bloomberg
Is this enough for Anglo American to fend of a BHP takeover?
Anglo American Plc plans to exit diamond, platinum, and coal mining in one of the biggest shake-ups in the company’s 107-year history, as the miner seeks to fight off a takeover approach from its bigger rival BHP Group.
Anglo said Tuesday that it plans to demerge or sell its De Beers diamond business, separate its Anglo American Platinum Ltd. unit and sell its coking coal mines in Australia. It will also slow spending on a giant fertilizer mine in England.
While Anglo has been working on a turnaround plan since the middle of last year, it’s been forced to accelerate the process after BHP proposed a takeover last month. So far Anglo has rejected two proposals from BHP — the latest worth £34 billion ($43 billion) — saying they undervalue the company and the structure is unworkable.
Anglo is pinning its hopes on investors supporting its plan — and backing management to deliver it — rather than pushing to accept an offer from BHP. Investors had been demanding Anglo come out with its own plan.
Thomas Biesheuvel#mining#mna#bhp#angloamerican#copperhttps://lnkd.in/g9Gqc2Bd
Is this enough for Anglo American to fend of a BHP takeover?
Anglo American Plc plans to exit diamond, platinum, and coal mining in one of the biggest shake-ups in the company’s 107-year history, as the miner seeks to fight off a takeover approach from its bigger rival BHP Group.
Anglo said Tuesday that it plans to demerge or sell its De Beers diamond business, separate its Anglo American Platinum Ltd. unit and sell its coking coal mines in Australia. It will also slow spending on a giant fertilizer mine in England.
While Anglo has been working on a turnaround plan since the middle of last year, it’s been forced to accelerate the process after BHP proposed a takeover last month. So far Anglo has rejected two proposals from BHP — the latest worth £34 billion ($43 billion) — saying they undervalue the company and the structure is unworkable.
Anglo is pinning its hopes on investors supporting its plan — and backing management to deliver it — rather than pushing to accept an offer from BHP. Investors had been demanding Anglo come out with its own plan.
Thomas Biesheuvel#mining#mna#bhp#angloamerican#copperhttps://lnkd.in/g9Gqc2Bd
Copper is the new metal that is driving large mining companies strategy.
Look at the unsolicited pursuit/bid by BHP in taking over Anglo American. BHP sweetened its offer from $39 billion to $43 billion but the transaction is still in muddy waters.
This merger would enhance BHP's presence in leading copper-producing nations such as Chile and Peru.
Economies of scale and the prospect of being a dominant player in the copper supply chain fueled by EV growth is a great driver for M & A. Mining has always been at the forefront of industrial revolution with EV & REM triggering Industry 5.0.
Who would not want to takeover a successful company with great commodity portfolio.?
Lets see where the balance tilts.Although it will be a win win for both in the long run considering the market cap values of the pursuing and the pursued,
Yesterday BHP withdrew its proposal for Anglo American after Anglo’s Board declined BHP’s request for a bid deadline extension, as it had large concerns regarding the complexity of the deal structure. This could be the right call. The two UK mining “mega-mergers”, Glencore/Xstrata and Rio Tinto/BHP, were significantly less complex and each lasted over a year (see table), and the latter didn’t even complete. An offer for Anglo would have involved the spin off of two listed South African companies in addition to the share-for-share offer, and would have come under significant regulatory and political scrutiny. This could have seen the process drag on and create prolonged uncertainty for shareholders in all of the companies involved. #manda#mergersandacquisitions#mining#londonstockexchange#bhp#angloamerican
If completed, BHPs bid for Anglo American would be the largest mining deal of all time. It would mark a substantial shift in appetite for mining megadeals, after more than a decade where the focus has been on small cap plays and asset sales. The deal is far from certain at this point, with a deal structure that proposes demerging assets and political opposition it will be interesting to see how shareholders digest this news.
This approach comes after much speculation over a takeover or break-up of Anglo American, which has seen its market capitalisation fall from over GBP 50bn in 2022. Even if not successful, this development could be the catalyst for activity at Anglo.
A break-up of Anglo American has been on investor agendas for a while the structure of BHP’s bid makes that outcome more likely, whether or not a takeover is eventually agreed. Read Will Cain's article on Mergermarket here https://lnkd.in/eyD97ZtN#Mergersandacquisitions#Megadeal#BHPBilliton#AngloAmerican
