'Working hard to stand still', in five words, Citi revealed the real reason why BHP needs to buy Anglo American – because without an acquisition, BHP has stopped growing.
"Working hard to stand still", in five words, Citi revealed the real reason why BHP needs to buy Anglo American – because without an acquisition, BHP has stopped growing.The big US investment bank said in a report published after a tour of BHP's South American copper assets that falling grades, rising costs, and a significant capital requirement made it hard to grow organically.
But it's also possible that the focus on costs and production challenges was part of a softening-up exercise to align the views of analysts with that of BHP management in the lead up to another move on Anglo American.Current South American copper operations did impress the bankers for their size and efficiency. Morgan Stanley was particularly impressed with the fully automated Spence mine and the way technology being used there could be applied across the copper portfolio.
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