BHP’s Attempted Takeover of Anglo American: A Strategic Move to Dominate Global Copper Production

BHP, the Australian mining giant, recently made a substantial takeover offer for British mining company Anglo American, aiming to become the world's leading copper producer. The offer, valued at £31.1 billion (approximately 36 billion euros), was quickly rejected by Anglo American as too low. This proposed merger highlights the intense competition and strategic interest in securing significant copper resources, crucial for the energy transition.

Both companies are key players in global copper production, with BHP and Anglo American ranking third and sixth, respectively. The merger would have positioned BHP to control about 10% of the world's copper output, overtaking current leader, American Freeport-McMoran.

The bid by BHP underscores the critical nature of copper as a fundamental resource for future technologies, particularly in the energy sector. Analysts like Maxime Kogge from Oddo BHF highlight the "scarcity effect" of copper resources, given the lack of new significant deposits and the difficulty in acquiring major players in the industry.

The offer also suggests a selective interest in Anglo American's assets, particularly its copper mines in Chile and Peru, while proposing the divestiture of its South African platinum and iron subsidiaries. This strategic focus indicates a trend towards more large-scale mergers in the mining industry, driven by the desire to consolidate and expand copper production capacities essential for sustainable energy solutions.