BHP has abandoned plans for another takeover bid of Anglo American due to the significant increase in Anglo's share price, deeming a deal too costly. Anglo American's restructuring plan, which involves divesting coal, platinum, and diamond assets, has been well-received by investors, driving up its share value by 40% in the past year. BHP, on the other hand, has faced a 17% decline in its share price due to lower iron ore prices and a weak Chinese real estate market. While BHP remains interested in Anglo's copper assets, a renewed bid is considered unlikely until Anglo completes its restructuring, including the spin-out of its platinum business.
BHP has cooled on returning with another bid for rival miner Anglo American, according to people close to the company, with the rise in Anglo’s share price making a deal too expensive for the Australian group. London-listed Anglo launched a radical restructuring plan last year, in the midst of BHP ’s ultimately unsuccessful £39bn takeover attempt, with plans to dispose of its coal, platinum and diamond businesses that were well received by investors.
Anglo’s shares are trading about 3 per cent higher than the value of BHP’s final all-share offer in May last year, according to calculations by Ben Davis, analyst at RBC. A renewed bid would be more likely after Anglo spins out its platinum business, he said. “It will be a different company after those restructuring changes,” he said. “I feel there is already a bid premium in the shares today.
MERGERS AND ACQUISITIONS MINING BHP ANGLO AMERICAN COPPER SHARE PRICE
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