(Reuters) -BHP Group said on Monday it is no longer pursuing a potential combination with Anglo American after preliminary discussions with Anglo’s board. The company said it still believes a tie-up would have offered “strong strategic merits” and created value for stakeholders, but added that it remains confident in the strength of its own organic […]
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BHP abandons Anglo American approach, says own growth plan compelling
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(Reuters) -BHP Group said on Monday it is no longer pursuing a potential combination with Anglo American after preliminary discussions with Anglo’s board.
The company said it still believes a tie-up would have offered “strong strategic merits” and created value for stakeholders, but added that it remains confident in the strength of its own organic growth strategy.
The group attempted a $49 billion takeover of Anglo last year, but the target rejected multiple approaches and BHP eventually withdrew.
“There’s probably a handful of times when assets like this are up for sale, so BHP may as well assess if the option is open. But it does look a little messy from the BHP side,” said Kaan Peker, analyst with RBC in Sydney.
Reuters reported on Sunday that BHP had revived its takeover approach for Anglo American, just months after the London-listed miner outlined plans to merge with Canada’s Teck Resources to form a global copper-focused giant.
BHP’s apparent reversal comes less than three weeks before Anglo and Teck shareholders are due to vote on the more-than-$60-billion tie-up.
(Reporting by Roshan Thomas in Bengaluru and Melanie Burton in Melbourne; Editing by Edmund Klamann and Diane Craft)