Mining giant BHP (ASX:BHP) has confirmed reports that it has proposed a non-binding takeover offer comprising all shares of Anglo American (LSE:AAL) for nearly $60 billion.
BHP, which has a market capitalisation of $230.75 billion, says the combination is consistent with its strategy on focusing on long-term fundamental value and its capital allocation framework.
Under the agreement, BHP will acquire all Anglo’s shares for £25.08 ($48.13) per share, including £4.86 in Anglo Platinum shares and £3.40 in Kumba shares.
The price represents a premium on the implied market value of Anglo’s unlisted assets of 31%, as well as a premium of 78% to the volume weighted average price of Anglo’s shares in the 90 trading days prior to and including 23 April 2024.
BHP says the proposal is subject to customary conditions, including completing due diligence.
The company notes the combination would increase its exposure to future-facing commodities through Anglo’s copper assets and complement its iron ore and metallurgical coal portfolios with Anglo’s iron ore operations in Brazil and metallurgical coal assets in Queensland.
Post completion, Anglo American’s other operations including its diamond business would be subject to strategic review.
Anglo American is a global mining company focused on metals and minerals that enable a cleaner, greener, more sustainable future.
BHP is an Australian multinational mining company focused on iron ore, higher-quality metallurgical coal, nickel, copper, and potash.
Write to Aaliyah Rogan at Mining.com.au
Images: AAP/James Ross
