BHP & Anglo Merger: Last day for an offer
Today's the last day for BHP and Anglo American to agree on an offer for their mining merger. BHP has until 2am Thursday AEST (5pm Wednesday London time) to provide an offer both parties can commit to, after Anglo gave BHP a 7 day extension.
The third and final offer provided by BHP valued Anglo at 29.34 pounds per share or 38.6 billion pounds (AUD $75 billion) and included Anglo divesting their South African platinum and iron ore assets.
However, Anglo rejected this offer with reports stating that the two companies still fundamentally disagree on the deal structure, most likely relating to complicated process of the seperation of their mining assets (Financial Times).
“Unless BHP is willing to compromise on the structure, I don’t see how Anglo’s board can recommend this offer” said a person close to Anglo American (FNN).
This deal has been in talks for a while, but what importance does this merger bring?
Taken from BHP's own release, their statement read,
"The combined company would have an exceptional portfolio of world-class assets, focused on future facing commodities and higher-quality steel-making raw materials. It would create meaningful synergies, and have an enviable growth pipeline with the financial capacity to advance them."
Since this deal was announced, BHP's shares have been creeping up, up 0.10% in this morning's session already.
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