BHP has submitted a sweetened takeover proposal to Anglo American, valuing the rival miner at nearly $64 billion, but it has again been rebuffed.
BHP has submitted a sweetened takeover proposal to Anglo American, valuing the rival miner at nearly $64 billion, but it has again been rebuffed.
The revised scrip proposal represented an increase of 14.6 per cent over the terms of BHP’s initial offer.
BHP chief executive Mike Henry said he strongly believed the revised proposal would be a win-win for BHP and Anglo American shareholders.
“We are disappointed that this second proposal has been rejected,” he said.
“BHP and Anglo American are a strategic fit and the combination is a unique and compelling opportunity to unlock significant synergies by bringing together two highly complementary, world class businesses.”
Mr Henry said the combined business would have a leading portfolio of high-quality assets and the balance sheet strength and capability to execute an attractive pipeline of growth options.
BHP submitted its revised proposal on 7 May and Anglo rejected it on 13 May.
It comes nearly one month after BHP initially proposed a combination with Anglo.
The key attraction at Anglo is its portfolio of copper mines – a commodity in which BHP is keen to lift its exposure.
Under the revised proposal, BHP increased the number of BHP shares that would be received by Anglo American shareholders.
Specifically, Anglo shareholders would receive 0.8132 BHP shares for each ordinary Anglo share they own.
In line with BHP’s original proposal, the deal was contingent on Anglo divesting two unwanted subsidiaries in South Africa – Anglo Platinum and Kumba – to its existing shareholders.
BHP said the deal valued Anglo American at £34 billion ($A64 billion) and implied a premium of 50 per cent on the price of Anglo shares before news of BHP’s takeover interest emerged.
