25th Apr 2024 02:47
(Alliance News) - British mining heavyweight Anglo American PLC confirmed Thursday it was "reviewing" a takeover bid from its larger Australian rival BHP Group Ltd, in what would rank as one of the sector's biggest deals in years.
Anglo American did not disclose the price of the "unsolicited" offer, which must be sewn up before a deadline of May 22.
BHP's offer would first hinge on Anglo American splitting off its platinum and iron ore operations in South Africa. Anglo's platinum operations are listed on the Johannesburg Stock Exchange under Anglo American Platinum Ltd, as are its iron ore operations under Kumba Iron Ore Ltd.
Australian-based BHP has a market value of around USD148 billion, while London-based Anglo American has a market value of about USD36 billion.
"The board is currently reviewing this proposal with its advisers," Anglo American said in a statement.
"There can be no certainty that any offer will be made nor as to the terms on which any such offer might be made.
"Pending any further announcements Anglo American shareholders should take no action."
BHP declined to comment.
BHP, already one of the world's largest mining operations, has recently been buffeted by plummeting nickel prices as well as legal costs related to a 2015 mining disaster in Brazil.
Anglo American earlier this year announced plans to cut thousands of jobs across its slumping platinum operations in South Africa.
source: AFP
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