From Morningstar: 2024-04-25 05:41:00

British mining giant Anglo American is reviewing a takeover bid from Australian rival BHP Group. The offer remains undisclosed, but it must be decided by May 22. BHP’s proposal includes splitting off Anglo’s South African platinum and iron ore operations. Share prices surged 12% on the news, with potential impacts on UK investors.

Should BHP succeed in acquiring Anglo American, it would create the world’s largest copper miner but would strip the FTSE of a significant mining firm. This potential takeover comes amid a trend of US businesses targeting undervalued UK-listed stocks. However, there are concerns regarding the impact on the UK’s image as a place to list companies.

Currently, Anglo American is in the process of reviewing the bid with its advisers. The company emphasized that there is no certainty of an offer being made or the terms of such an offer. BHP has refrained from commenting on the situation. Anglo American’s market value is significantly lower than that of BHP, which is facing challenges with nickel prices and legal costs.

Earlier this year, Anglo American announced workforce reductions in its troubled platinum operations in South Africa. The board urges shareholders to await further announcements and take no immediate action. BHP, being part of one of the world’s largest mining operations, has experienced recent setbacks, including legal issues related to a 2015 mining disaster in Brazil.



Read more at Morningstar: Anglo American Shares Surge After BHP Takeover Bid