Mining giant BHP (ASX:BHP) has rescinded its takeover bid for Anglo American (LON:AAL), citing costs and regulatory risk in South Africa.
In April, BHP, which has a market capitalisation of $228.62 billion, proposed a non-binding deal to acquire Anglo for nearly $60 billion.
However, Anglo rejected the offer, and BHP made a revised offer in May of $64.63 billion.
BHP says it is disappointed Anglo has decided to not continue discussions with the company.
BHP CEO Mike Henry says while the company believed the proposal was a compelling opportunity to grow the value for both sets of shareholders, an agreement could not be reached.
“Despite seeking to engage constructively and numerous requests, we were not able to access from Anglo American key information required to formulate measures to address the excess risk they perceive,” he says.
“We remain of the view that our proposal was the most effective structure to deliver value for Anglo American shareholders, and we are confident that, working together with Anglo American, we could have obtained all required regulatory approvals, including in South Africa.”
Anglo American is a global mining company headquartered in London. The company is focused on its operations and undeveloped resources that provide metals and minerals needed for a cleaner and more electrified world, including platinum, diamonds, copper, nickel, iron ore, and steelmaking coal.
BHP is a multinational mining and metals company headquartered in Melbourne. The company is focused on copper, iron ore, nickel, coal, and potash.
Write to Aaliyah Rogan at Mining.com.au
Images: iStock
