Anglo American Rejects BHP's $50 Billion Takeover Offer in 2025, Ending Negotiation Talks

Key Highlights

• Anglo American has declined to grant BHP Group any further extensions after rejecting the latest $50 billion takeover proposal last week.
• Since last month, Anglo American has turned down three separate bids from BHP, with the most recent offer valuing the company at nearly $50 billion.
• Following the rejection of the second offer, Anglo announced plans to streamline its portfolio by spinning off several subsidiaries.

Negotiations between two mining giants, Anglo American and BHP Group, appear to have reached an impasse as Anglo announced it will not extend the deadline for addressing concerns regarding BHP’s recent takeover bid. The deadline is set for Wednesday afternoon, effectively suspending further talks for the time being.

BHP’s takeover attempts, comprising three bids culminating in an approximate $50 billion valuation, have all been declined by Anglo American. The London-based miner cited the "complex and unattractive" structure of the latest offer, consistent with previous rejections.

The contentious structure involves an all-stock deal valuing Anglo American at $49.87 billion, and demands the spin-off of two South African subsidiaries—a move Anglo warns would introduce significant costs and regulatory challenges.

Earlier Wednesday, BHP expressed confidence in its proposal, describing the identified risks as "quantifiable and manageable," and asserting it provided a "viable pathway" to finalize the deal.

Background of Anglo American and BHP's Negotiations

BHP initiated talks last month with a $39 billion offer aimed at expanding its copper mining assets amid rising demand for copper in renewable energy and electric vehicles.

Anglo American rejected this initial offer, considering it undervalued and overly complex, prompting BHP to increase its bid to around $43 billion. Following the second rejection, Anglo unveiled plans to simplify its business by divesting multiple assets.

After dismissing a third offer last week, Anglo agreed to a one-week extension but maintained confidence in its independent future prospects, ultimately rejecting BHP’s final proposal.

On the stock market, BHP's American depositary receipts (ADRs) rose 1.5% pre-market on the NYSE, while Anglo American's shares declined 1.5% on the London Stock Exchange as of early Wednesday.

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