Anglo American Rejects BHP’s £31 Billion Bid as Undervalued

Anglo American on Friday turned down a £31 billion bid from mining company BHP, describing the offer as undervalued and "opportunistic." BHP's bid aims to form the world's largest copper producer, a strategic move as the demand for commodities essential to the electric vehicle and battery market escalates. Copper accounts for 30% of Anglo's production.

Legal & General Investment Management, a significant investor in Anglo, echoed the board's concerns regarding the offer's valuation. Anglo's statement criticized the proposal for not adequately reflecting the company's future prospects and for diluting the value potential for Anglo's shareholders compared to those of BHP.

The statement also highlighted the unattractive nature of the proposed deal structure, noting it introduces considerable uncertainty and execution risks, predominantly affecting Anglo, its shareholders, and other stakeholders.