BHP announced on Monday that Anglo American has rejected a revised takeover offer from the Australian miner, valuing the company at £34 billion. The second offer, made on May 7, followed an initial £31 billion proposal in April and was rejected on May 13.
The second offer, structured similarly to the initial proposal, aimed to give Anglo shareholders a larger share in BHP. BHP CEO Mike Henry expressed disappointment at the rejection, stating, “BHP put forward a revised proposal to the Anglo American board that we strongly believe would be a win-win for BHP and Anglo American shareholders. We are disappointed that this second proposal has been rejected.
“Henry noted that the revised proposal represented a 15% increase in the merger exchange ratio, increasing Anglo American shareholders’ aggregate ownership in the combined group from 14.8% to 16.6%. He emphasized that BHP and Anglo American are a strategic fit, with the combined business poised to unlock significant synergies by bringing together complementary, world-class assets in copper, potash, iron ore, and metallurgical coal. BHP’s track record of operational excellence was highlighted as a key factor in maximizing returns from these high-quality assets.
The bid for Anglo American has sparked market speculation about potential rival offers, particularly given copper’s critical role in the transition to a clean economy. So far, no other bids have emerged. Rio Tinto has enlisted JPMorgan for advice, and Glencore is reportedly considering its options.
Anglo American’s rejection of the initial and revised offers from BHP has set the stage for potential further bids. However, some analysts, such as Aitken Mount Capital’s Angus Aitken, have warned that the deal could become problematic for BHP in the long term if it ends up selling off Anglo’s assets at a discount. 
