BHP (ASX:BHP) has moved on to pursue alternative growth opportunities, the company’s Chairman said on Wednesday (30 October), and likely won’t make another takeover bid for Anglo American (LSE:AAL).
In May, the world’s biggest mining company dropped a US$49 billion ($74.5 billion) offer to acquire Anglo after it was rebuffed three times. A six-month freeze had then been put on BHP under UK takeover rules but is due to expire at the end of November, sparking speculation that another offer could be on its way.
“We made an approach to Anglo American earlier this year . . . we thought there was an opportunity here to create something unique and special, a bit of a sort of a one plus one equals three opportunity,” BHP Chairman Ken MacKenzie said at the company’s AGM in Brisbane.
“Unfortunately, Anglo American shareholders had a different view, and they thought there was more value in the plan that their management wanted to execute. And so they moved on. And quite frankly, so have we.”
In support of his statement, MacKenzie pointed to BHP’s deal with Lundin Mining (TSX:LUN) to jointly take over Vancouver-based developer Filo Corp (TSX:FIL) in an effort to beef up the major’s South American copper assets.
However, in a statement published this morning, BHP sought to walk back MacKenzie’s comments, saying they “were not intended to be a statement to which Rule 2.8 of the UK City Code on Takeovers and Mergers (UK Code) applies”.
Rule 2.8 of the Code states that a person making a statement of non-intent to make an offer for a company “should make the statement as clear and unambiguous as possible”.
“The UK Takeover Panel Executive has confirmed that the comments made will not be treated as a statement of intention not to make an offer in respect of Anglo American for the purposes of Rule 2.8 of the UK Code,” BHP’s statement says.
Write to Oliver Gray at Mining.com.au
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