BHP’s latest overture toward Anglo American underscores mounting pressure in a mining industry eager to secure scale and growth—particularly in copper, where global supply is tightening and demand is projected to surge as economies accelerate electrification.
The approach comes just weeks before shareholders of Anglo American and Teck Resources are set to vote on their own transformative deal, aimed at creating a combined entity worth more than $60 billion. This timing adds complexity to BHP’s ambitions and signals the competitive urgency surrounding copper assets.
BHP shares initially climbed as much as 1.3% in Sydney on Monday following news of the renewed bid, before paring most gains to close up 0.1%. The muted finish reflects investor caution as markets digested both the attempt and its subsequent withdrawal.
The move surprised many shareholders, given that CEO Mike Henry had spent months since the previous takeover attempt emphasizing a disciplined focus on existing operations. “There are lots of questions surrounding what this means for their new strategy,” said Dylan Kelly, head of research at Terra Capital, a BHP shareholder.
High-quality, long-life copper assets remain scarce. Despite operational challenges at some mines, investors view these assets as critical for future growth, making them increasingly expensive and difficult to acquire.
Jamie Hannah, deputy head of investments at Van Eck Associates Corp, noted:
This second attempt by BHP in as many years shows just how hard it is to execute copper M&A in today’s environment. I don’t think this approach was a failure—Mike Henry is just trying to do difficult deals in a difficult market.
BHP’s earlier 2024 proposal required Anglo to partially break itself up—a complex structure that faced resistance. The latest plan was reportedly simpler, aided by Anglo’s recent exit from its South African platinum business, which could have made the company more digestible for BHP.
However, market dynamics have shifted since then. BHP shares have declined in Australian trading, while Anglo’s stock has gained 11% in London. Meanwhile, Anglo’s proposed merger with Teck has garnered strong investor support. “Maybe BHP thought there was still an opportunity to squeeze in,” said Glyn Lawcock, head of metals and mining at Barrenjoey Markets Pty Ltd.
Following the withdrawal, BHP emphasized confidence in its organic growth strategy, citing major copper projects such as:
- Escondida in Chile
- Vicuna venture in Argentina
- Expansions in South Australia
In its statement, BHP reiterated that a combination with Anglo “would have had strong strategic merits and created significant value for all shareholders,” but stressed its commitment to existing growth plans. No details were provided on the specific terms offered to Anglo’s board.
Advisers on BHP’s latest approach included Lazard Inc., UBS Group AG, and Barclays Plc. Anglo declined to comment. Shareholders of Anglo and Teck will vote on 9 December, with regulatory approvals still pending in jurisdictions including China, the U.S., and Canada.
