Anglo American rejects BHP takeover offer
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The news: Anglo American has rejected BHP's takeover proposal, saying it was opportunistic and significantly undervalued the company and its future prospects.
Anglo American's board said the proposal had significant execution risks, uncertainty and complexity which made it highly unattractive for company shareholders.
The numbers: BHP confirmed on Thursday that it had made an all-share takeover offer for Anglo American on 16 April. The offer of 0.7097 BHP shares for each Anglo American share valued the target at about $60 billion.
BHP shares finished 4.47% at the end of the trading day on the ASX.
The context: BHP's proposed takeover of Anglo American represents a big bet on copper's role in the ongoing energy transition, and would make BHP the world's biggest copper miner at a time the commodity is facing a global supply crunch.
What they said: "Anglo American is well positioned to create significant value from its portfolio of high quality assets that are well aligned with the energy transition and other major demand trends," said Anglo American chair Stuart Chambers.
"The BHP proposal is opportunistic and fails to value Anglo American's prospects, while significantly diluting the relative value upside participation of Anglo American's shareholders relative to BHP's shareholders."
Read more: Mike Henry's Anglo American tilt could be the biggest deal in BHP's storied history
The source: London Stock Exchange announcement
