The company logo adorns the side of the BHP gobal headquarters in Melbourne on February 21, 2023. – The Australian multinational, a leading producer of metallurgical coal, iron ore, nickel, copper and potash, said net profit slumped 32 percent year-on-year to 6.46 billion US dollars in the six months to December 31. (Photo by William WEST / AFP) (Photo by WILLIAM WEST/AFP via Getty Images)
William West | Afp | Getty Images
LONDON — Anglo American rejected a third takeover proposal from rival BHP Group on Wednesday, as the companies agreed to extend talks deadline by one week.
“The Board considered BHP’s Latest Proposal carefully, concluded it does not meet expectations of value delivered to Anglo American’s shareholders, and has unanimously rejected it,” Anglo American Chairman Stuart Chambers said in a statement on the London Stock Exchange website.
“However, the Board is willing to continue to engage with BHP and its advisers on this topic and has therefore requested a one week extension to the PUSU deadline which has been consented to by the Panel,” Chambers added.
The British miner confirmed the third proposal from BHP offered about £29.34 per Anglo American share, based on undisturbed share prices as of market close on April 23.
Before discussions were extended, under U.K. takeover rules BHP previously had until 5:00 p.m. London to make a formal and final offer for Anglo following a drawn out four-week bidding battle.
Shares of Anglo American were up 0.35% shortly after the announcement, while BHP shares fell over 3.4%.
The Australia-based mining and metals giant made two prior non-binding offers for Anglo as it seeks to shore up its dominance in the copper industry given the metal’s key role in the energy transition and products such as electric vehicles, power grids and wind turbines.
The combined companies would form a behemoth in copper mining and the world’s largest player in the space, supplying 10% of global output, according to a Reuters analysis.
Anglo rejected both previous offers, however, saying that they “significantly undervalue the company and its future prospects.”
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