Hot copper
BHP CEO Mike Henry's push to diversify the mining giant via a $60 billion bid for Anglo American could be a career-defining moment — if he can avoid the fate of his predecessors.
In the two days after news of BHP’s $60 billion approach for Anglo American broke, the price of copper surged above USD10,000/tonne for the first time in two years. That’s important context to consider as the Australian miner’s chief executive Mike Henry looks to strike a career-defining deal.
Pulling it off was never going to be straightforward. BHP is now considering sweetening its offer after the London-based miner rejected its opening gambit. It almost certainly won’t be the only detour in what could become a drawn-out takeover saga.
Henry’s push to double down on copper — which Anglo American has ample exposure to — encapsulates his strategy to position the 139-year-old miner for the next chapter of its storied history by becoming a major global supplier for the minerals required for the net zero energy transition.
It follows some methodical groundwork in Henry’s first three years or so in the top job, including selling its oil and gas operations to Woodside as part of accelerating its shift from fossil fuels toward what it called “future facing” commodities, such as copper and nickel. It also ditched its dual-listing in London after coming under pressure from influential activist investor Elliott Investment Management, which also agitated for BHP’s exit from oil and gas.
