Mining
If Australia’s BHP can take over its South African rival Anglo American, it would become by far the largest copper miner. This metal is particularly sought after due to the rapid digitalization and transition to green technologies.
The world’s largest mining group, Australia’s BHP, has approached its rival Anglo American (headquartered in London) with a view to a takeover. Both companies have confirmed this.
Anglo American is originally a South African company and says it has received a proposal from BHP. The board of directors will now consider this. The offer has not yet been formalized, the mining company said, but BHP (itself worth about $48 billion) values its smaller rival at 31.1 billion pounds (or $38.8 billion), reports Bloomberg – which is 14 percent higher than the value of the company on Wednesday evening at the close of the market. Shares of Anglo American shot up 13 percent on Thursday morning after the news broke.
Under the proposal, Anglo American would have to spin off its platinum and iron ore operations in South Africa. With the acquisition, the new merged company would become by far the largest producer of copper, accounting for 10 percent of global mining. Anglo American owns large copper mines in South Africa. That metal is essential in the rapid digitalization of the economy and the transition to low-carbon technologies. Rapidly rising demand is expected to push copper prices up in the coming years.
If a takeover actually takes place, it would represent one of the largest transactions in the sector in recent years.
