BHP has requested more time from Anglo American to finalize a merger deal. As the deadline to make a firm offer approaches, BHP is seeking an extension to evaluate the potential merger's merits.
Under UK takeover rules, any deadline extension must be agreed upon by Anglo American, a step it took last week to facilitate further discussions. BHP welcomed the initial extension, saying it allowed them to address Anglo American’s concerns regarding BHP’s proposal.
Despite ongoing discussions, the two companies have not reached an agreement. BHP mentioned it had proposed various socioeconomic measures to address concerns about the proposed transaction structure, suggesting these would provide greater economic benefits to South Africa than Anglo American’s Accelerating Value Delivery plan. Anglo American's plan involves divesting its coal, nickel, and platinum businesses and selling or demerging its 85% stake in De Beers.
BHP believes its approach would benefit all stakeholders but recognizes that further time is needed for engagement on its proposal. The company emphasized that this announcement does not constitute a firm intention to make an offer, and there is no certainty that an agreement or transaction will be reached.
The press release was issued by BHP without prior agreement or approval from Anglo American.
