From Morningstar: 2024-05-13 12:46:00

BHP Group confirmed an improved offer to buy Anglo American, valued at £34 billion, after an initial offer of £31.1 billion was rejected. Anglo shares were down in London and Johannesburg after the announcement. BHP’s revised proposal represents a 15% improvement in the merger exchange ratio, increasing Anglo shareholders’ stake to 16.6%.

BHP’s market cap is £116.07 billion, while Anglo’s is £36.90 billion. BHP has a primary listing in Sydney, with London shares at £22.95. Anglo American rejected BHP’s revised proposal, disappointing BHP CEO Mike Henry. As part of the deal, BHP wants Anglo American to split off certain assets in South Africa.

Morningstar’s metrics for Anglo American show a fair value estimate of £20.80, with a two-star rating. BHP’s metrics show a fair value estimate of £21.00, also with a two-star rating. Morningstar’s equity analyst believes there is a 50% chance the deal will be successful. The deal is seen as opportunistic, with potential for growth in key assets.



Read more at Morningstar: Anglo American Rejects Improved BHP Takeover Offer