BHP will not relent on structure, value of $49 billion Anglo offer, say sources
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 23 2024
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Source: reuters
- BHP's Takeover Proposal for Anglo American: BHP is standing firm on its takeover proposal for Anglo American, focusing on addressing execution risks and convincing Anglo about the deal's merits.
- Deadline Extension and Negotiations: BHP has until May 29 to make a firm bid for Anglo American; sources expect BHP to spend the week understanding Anglo's concerns and aiming for an agreement.
- Concerns and Obstacles: Anglo's chairman highlighted concerns about completion and execution risks in BHP's proposal, especially regarding the fate of Anglo's businesses in South Africa.
- Proposed Solutions: BHP offered to demerge Kumba Iron Ore and cover the capital gains tax, while Anglo plans to spin-off or sell less profitable businesses like nickel, diamond, and platinum.
- Future Scenarios: If the deal falls through, Anglo will focus on getting top dollar for its businesses; investors believe Anglo may not exist in a year, and BHP is ready to act.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
