Australian mining giant BHP announced this Monday morning that it has abandoned its plans to buy British rival Anglo American, which would have given birth to the world’s largest copper mining group. “BHP Group confirms it is no longer considering a merger of the two companies,” the company said in a press release published on the Australian Stock Exchange website.
Bloomberg News reported on Sunday that BHP, the No. 1 miner 1 in the world, has approached Anglo with an offer in a bid to disrupt a takeover by its Canadian counterpart, Teck Resources. However, Anglo is said to have rejected the proposal.
BHP “continues to believe that a merger with Anglo American will provide strong strategic advantages and create significant value for all stakeholders,” the Australian giant said, saying it was confident in the “potential of its own organic growth strategy”.
When asked, Anglo American referred AFP to BHP’s press release, which was the second attempt in two years. In 2024, the Australian giant withdrew its $49 billion (42.6 billion euro) buyout offer after disagreements over “regulatory risks and costs” in South Africa. BHP wants to divest Anglo platinum assets, but the idea has met with resistance from local governments.
Soaring demand for copper
Regarding copper, demand for it has increased rapidly in recent years, this metal is needed for the manufacture of solar panels, wind turbines, batteries for electric vehicles and consumer electronic devices. The technology is also used in military equipment, especially aircraft, while demand related to the rise of artificial intelligence and data centers is increasing. In October, the price reached a record.
Teck Resources’ takeover of Anglo, if successful, would value the entity at more than 50 billion dollars (43.4 billion euros), according to the current market prices of both companies. A deal could be reached within 12 to 18 months depending on regulatory hurdles, according to a joint press release. Teck confirmed that this potential new group would join “the world’s 5 largest copper producers”.
