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How BHP's failed six-week pursuit of Anglo American unfolded

Published 2024-05-30, 10:13 a/m
© Reuters.

-Miner BHP Group (AX:BHP) walked away from its $49 billion plan to take over rival Anglo American (JO:AGLJ) on Wednesday after its last-ditch request for more time was rejected by the London-listed company, ending its six-week pursuit for the time being.

Here is a timeline of the events that unfolded over the last six weeks.  * Feb 22: Anglo American announces a review of its assetsafter a 94% plunge in annual profit and writedowns at itsdiamond and nickel operations. * April 25: BHP Group discloses a bid of $39 billion forAnglo American, made on April 16, and proposes to spin off itsLondon-listed target's iron ore and platinum assets in SouthAfrica. * April 25: The South African government announcesscrutiny of BHP's proposed deal to buy Anglo American. * April 26: Anglo American rejects BHP's first $39 billiontakeover proposal, citing significant undervaluation of thecompany and its prospects. * April 27: BHP considers making an improved offer forAnglo American after its initial proposal is rejected. * April 29: South Africa says BHP Group's proposed bid forAnglo American is "normal market activity". * May 2: Commodities group Glencore (LON:GLEN) is studying anapproach for Anglo American that could potentially spark abidding war, two sources tell Reuters. * May 7: BHP's plan to divest Anglo American's SouthAfrican assets is revealed to be key to its proposed takeoverstrategy, investors briefed on the miner's thinking say. * May 9: Japanese steelmakers raise concerns about BHPGroup's potential dominance in the global supply of coking coalif it acquires Anglo American. * May 10: Rio Tinto (LON:RIO) had considered making an offer forAnglo American, the Australian Financial Review reports. * May 13: Anglo American rejects a raised takeoverproposal of $42.67 billion from BHP Group. * May 14: Anglo American says it plans to refocus oncopper and offload less profitable coal, nickel, diamond andplatinum assets to fend off BHP's takeover bid. CEO says BHP bidforced him to accelerate plans for a spin-off of its SouthAfrican platinum assets. * May 14: BHP Chief Executive Mike Henry urges AngloAmerican investors to consider the merits of his company's bid. * May 16: Anglo American suspends global hiring as itplans to simplify its operations and avert BHP's takeover bid. * May 22: Anglo agrees to a week-long extension for BHP tomake a binding takeover offer, after rejecting a third proposalthat values it at $49 billion. * May 23: BHP stands firm on its latest takeover proposalfor Anglo American despite the rejection, plans to addressexecution risk concerns, sources say. * May 25: Key shareholders, including BlackRock (NYSE:BLK), encourageAnglo to continue engaging in talks with BHP over the proposedmerger. * May 29: BHP Group abandons its $49 billion plan to takeover Anglo American after a last-ditch request for more time isrejected.


© Reuters. FILE PHOTO: A small toy figure and mineral imitation are seen in front of the BHP logo in this illustration taken November 19, 2021. REUTERS/Dado Ruvic/File Photo

Analysts at JPMorgan (NYSE:JPM) and RBC (TSX:RY) Capital Markets say there are a few areas to focus on moving forward: * The delivery of Anglo's standalone or defence strategy torefocus on copper and spin off or sell its less profitable coal,nickel, diamond and platinum businesses. * The potential for other suitors to assess their ownpotential interest in Anglo. Analysts at RBC Capital Marketslist out Glencore, Rio Tinto and Vale as the most likelycandidates. * A partial or total sale of Anglo's copper segment, whichJPMorgan analysts estimate to be worth about $27 billion, orabout 17.25 pounds per share. RBC Capital analysts said thatgiven the quality of the copper portfolio, they would notdiscount the probability of a Chinese state entity gettinginvolved.

(SOURCE: Reuters stories)

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