BHP To Hold Firm On Latest Takeover Proposal For Anglo American: Report

BHP Group Limited BHP reportedly planned to stand firm on the structure and value of its latest takeover proposal for Anglo American Plc. AAUKF.

The mining giant now has until May 29 to make a firm bid for Anglo American, or it will be forced to walk away for at least six months under the UK’s takeover rules after being granted a one-week extension on Wednesday.

Some people familiar with the matter said that BHP would spend the next week properly understanding Anglo American’s concerns on an asset-by-asset basis to convince it about the merits of the deal, reported Reuters.

BHP had submitted three unsolicited, conditional proposals, each with the same caveat: Anglo American would be required to execute two complex demergers of its prized South African assets — Anglo American Platinum and Kumba Iron Ore.

Last week, Anglo American turned down BHP’s improved $43 billion acquisition offer.

Baden Moore, analyst at broker CLSA in Sydney, said “BHP’s goal will be to get Anglo American to agree to open its books and allow a further extension.”

Read: BHP’s Acquisition Deadline Approaches As Anglo’s $9B Project Faces Uncertainty

Investors can gain exposure to the stock via Exchange Traded Concepts Trust Optica Rare Earths & Critical Materials ETF CRIT and Exchange Traded Concepts Trust Range Global Coal Index ETF COAL.

Price Action: BHP shares are up 0.26% at $58.88 at last check Thursday.

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