Anglo American digs in its heels, denies BHP's extension request
Diversified miner Anglo American on Wednesday denied BHP’s request for more time to engage on a proposed takeover transaction, stating that its fundamental concerns regarding the $49-billion proposal remain unchanged.
With time running out, BHP now only has until 16:00 GMT to announce a firm intention to make an offer for Anglo, or walk away for six months.
Earlier on Wednesday, BHP asked for more time to try and win over Anglo, which has already rejected three proposals from its larger rival.
BHP on Wednesday proposed a range of socioeconomic measures intended to address Anglo’s concerns regarding its transaction structure. The group also indicated that it would be willing to discuss an appropriate reverse break fee, payable by BHP, on failure to achieve the necessary anti-trust and regulatory approvals, including in South Africa.
Anglo said that while there had been extensive engagement with BHP and its advisers, the socioeconomic measures put foward to support regulatory approvals, were confined in scope, impact and duration.
"This approach does not sufficiently address the fact that Anglo American's shareholders would bear disproportionate execution and value risks and uncertainty over an extended period, nor does it consider that material conditions would likely be imposed in relation to both Anglo American Platinum and Kumba which would require the approvals of their respective boards.
"This value risk would therefore be exclusively for the account of Anglo American's shareholders under the BHP proposal, as well as eroding the value of the shares held by the minority shareholders of both subsidiary companies," said Anglo.
Further, Anglo said that BHP continued to restate its belief that the risks of its complex structure were not material, yet it remained unwilling to amend its proposed structure to assume these risks.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Education: Consulting with member companies to obtain the optimal benefits from their B-BBEE spending, skills resources as well as B-BBEE points
VISIT SHOWROOM
We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
