Anglo American rejects last-minute request by BHP for more time for $49 billion deal

By Steve Goldstein

Anglo American on Wednesday rejected BHP Group's last-minute request to extend a deadline for deal talks between the two multinational mining groups just hours before they expire.

Anglo American, which last week agreed to BHP's request for more time, now says it won't ask the U.K. Takeover Panel to extend the current deadline which is for the Australian metals giant to launch a formal bid by 5 p.m. local time Wednesday.

Anglo American shares (UK:AAL) slipped 1%. BHP shares (UK:BHP) (BHP) rose 2% in London.

The main sticking point is BHP's desire that Anglo American Platinum (ZA:AMS) and Kumba Iron Ore (ZA:KIO) be demerged to Anglo American's shareholders as part of its bid.

"Throughout the engagements with BHP, BHP continues to restate its belief that the risks of its complex structure are not material, yet has repeatedly and consistently stated both publicly and during the engagements that it is unwilling to amend its proposed structure to assume these risks," said Anglo American in a statement.

BHP earlier said it proposed what it called a range of socioeconomic measures that would support South African regulatory approval.

BHP's indicative offer is to swap 0.8860 of its shares for each Anglo American share, which last week valued the company at GBP38.6 billion ($49 billion).

See also: Anglo American to exit diamond, platinum and coal mining as it fights BHP bid

Analysts at RBC say the structure is too complex for BHP to go hostile. If BHP doesn't launch a formal bid, it will be barred from buying Anglo for six months, unless a competing offer emerges.

So far, other miners including Glencore (UK:GLEN), Rio Tinto (UK:RIO) and Vale (VALE) have not waded into the talks.

-Steve Goldstein

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05-29-24 0803ET

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