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from a $49 billion plan to take over Anglo American , which rejected three proposed offers from its bigger rival over the past six weeks.
“It was one of the best opportunities out there for them and it was always going to be hard to complete. I applaud them for showing discipline,” said Andy Forster, senior investment officer at Argo Investments, which holds BHP shares. “As investors, it wasn’t obvious that the proposed deal was very accretive. Yes it would bring more copper to the portfolio, but depending on what they paid for it, it’s not necessarily accretive to the share price,” Pendal Group portfolio manager Brenton Saunders said. assets to grow, given rising costs for developing new mines and a blowout in timelines for regulatory approvals, mining industry sources in Perth said.
“Anto is the one that screams the most synergies…but they are very expensive. Most of these you’re going to pay a large premium, so you have to have a lot of synergies to justify it,” he added.Instead of chasing Anglo, Pendal’s Saunders said BHP will have to revert attention to its own growth opportunities in Pilbara iron ore and copper in South Australia and Chile, and hopefully lift dividends.
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