Anglo American Rejects Offer from BHP
[Click image to enlarge]
[Click image to enlarge]
The board of Anglo American released an update regarding the unsolicited, non-binding, and highly conditional combination proposal from BHP Group Limited.
The proposal comprised an all-share offer for Anglo American by BHP, with a requirement for Anglo American to complete two separate demergers of its entire shareholdings in Anglo American Platinum Limited and Kumba Iron Ore Limited to Anglo American shareholders. The all-share offer and required demergers would be inter-conditional.
The board said it considered the proposal with its advisers and concluded that the proposal significantly undervalues Anglo American and its future prospects.
In addition, the proposal contemplates a structure which the board believes is highly unattractive for Anglo American’s shareholders, given the uncertainty and complexity inherent in the proposal, and significant execution risks.
The board has unanimously rejected the proposal.
“Anglo American is well positioned to create significant value from its portfolio of high quality assets that are well aligned with the energy transition and other major demand trends. With copper representing 30 percent of Anglo American’s total production, and with the benefit of well-sequenced and value-accretive growth options in copper and other structurally attractive products, the board believes that Anglo American’s shareholders stand to benefit from what we expect to be significant value appreciation as the full impact of those trends materializes,” said Stuart Chambers, chairman of Anglo American.
“The BHP proposal is opportunistic and fails to value Anglo American’s prospects, while significantly diluting the relative value upside participation of Anglo American’s shareholders relative to BHP’s shareholders. The proposed structure is also highly unattractive, creating substantial uncertainty, and execution risk borne almost entirely by Anglo American, its shareholders and its other stakeholders. Anglo American has defined clear strategic priorities — of operational excellence, portfolio, and growth — to deliver full value potential and is entirely focused on that delivery,” added Chambers.
Anglo American is a leading global mining company and its products are the essential ingredients in almost every aspect of modern life. Their portfolio of world-class competitive operations, with a broad range of future development options, provides many of the future-enabling metals and minerals for a cleaner, greener, more sustainable world and that meet the fast growing every day demands of billions of consumers. With people at the heart of their business, they use innovative practices and the latest technologies to discover new resources and to mine, process, move, and market products to their customers — safely and sustainably. As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium quality iron ore and metallurgical coal for steelmaking, and nickel — with crop nutrients in development — they are committed to being carbon neutral across our operations by 2040. More broadly, their Sustainable Mining Plan commits them to a series of stretching goals to ensure they work towards a healthy environment, creating thriving communities, and building trust as a corporate leader. They work together with business partners and diverse stakeholders to unlock enduring value from precious natural resources for the benefit of the communities and countries in which they operate.
BHP is a leading global resources company. They extract and process minerals, oil and gas, with approximately 80,000 employees and contractors, primarily in Australia and the Americas. Their products are sold worldwide, with sales and marketing led through Singapore and Houston, United States. Their global headquarters are in Melbourne, Australia.
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
Copyright © 2024 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
For licensing permission, .(JavaScript must be enabled to view this email address)
