Anglo American Rejects BHP’s $39B Takeover Offer, Opening Door To Bidding War

Anglo American on Friday turned down the almost $39 billion takeover offer by rival mining giant BHP Group (BHP), setting the stage for a bidding war that could reshape the global industry.

Anglo American said the bid “significantly undervalues” it, adding that BHP’s proposed offer involves a structure that is “highly unattractive” for shareholders given its “uncertainty and complexity.”

The offer, which is contingent on Anglo American’s spinning off its South African iron ore and platinum businesses, is a bet by BHP on soaring demand for copper at a time when the world is moving away from fossil fuels toward more renewable energy projects and electric vehicles.

A takeover of Anglo American would catapult BHP into the top spot for copper producers, with 10% or more of the world’s output, according to Bloomberg.

The offer for Anglo American is BHP’s latest move to expand its copper business, after buying Australian mining company OZ Minerals last year.