Anglo American Rejects BHP's $60 Billion Takeover Bid
Anglo American has rejected a $60 billion takeover proposal from rival BHP, stating that the offer significantly undervalues the company and its future prospects. In a statement, Anglo American's chairman, Stuart Chambers, called the proposal "opportunistic" and highlighted the company's focus on its own strategic priorities for growth and value creation.
The proposed structure of the deal was also deemed unattractive by Anglo American, as it would create significant uncertainty and execution risks for the company, its shareholders, and other stakeholders. Chambers emphasized Anglo American's commitment to delivering its full value potential through operational excellence, portfolio optimization, and growth initiatives.
Earlier on Friday, concerns were raised about a potential leak regarding the takeover bid, as Anglo American's share price experienced a spike before BHP's formal announcement. The late surge in share price, contrasting with the modest gains of other mining companies, has prompted questions about the integrity of the UK's markets and potential investigations by the Financial Conduct Authority (FCA).
While the FCA typically refrains from commenting on individual trading irregularities, it has confirmed its obligation to detect and report suspicious trading activities. The regulator has declined to comment on whether it will review the activity in this specific case. Anglo American has also declined to comment on whether it has contacted the FCA regarding potential irregular trading or whether the regulator has been in touch.
BHP's offer of 25.08 British pounds per Anglo American share, representing a 31% premium over Wednesday's closing price, included a plan to spin out Anglo American's iron ore and platinum assets in South Africa. However, this proposal was ultimately rejected by Anglo American, which remains focused on its own strategic priorities and delivering value to its shareholders.