South Africa’s state-owned asset management firm Public Investment Corp has signalled that it remains open-minded about BHP Group Ltd’s bid to buy Anglo American PLC, Business Day reported.

‘The PIC will assess any offers that are presented to shareholders and will urgently engage directly with Anglo American and BHP. As a long-term investor, any transaction will be assessed to ensure value creation for clients while taking into account socioeconomic impact,’ PIC Chair David Masondo told Business Day in an interview on Tuesday.

Masondo is also South Africa’s deputy finance minister.

‘The mining sector is a critical part of our economy, impacting a wide variety of stakeholders. Therefore, new opportunities that may arise in the sector need to take these factors and long-term sustainability into account, including the depth and health of financial markets and the SA economy,’ Masondo said.

https://www.businesslive.co.za/bd/companies/mining/2024-05-08-exclusive-pic-open-minded-on-bhp-anglo-merger/

PIC has a 7.0% stake in Anglo American, according to Morningstar.

BHP confirmed on April 25 it had offered to buy Anglo American in an all-share deal valuing Anglo at £31.1 billion.

A day later, Anglo American said its board has ‘unanimously’ rejected an ‘opportunistic’ offer from BHP, on grounds that it ‘significantly undervalues’ the London-based miner.

Meanwhile, Congress of South African Trade Unions, or Cosatu, said it is concerned about the implications of a possible sale of Anglo American assets in South Africa on jobs and investments.

As part of the proposed deal, BHP wants Anglo American to split off Anglo American Platinum Ltd and Kumba Iron Ore Ltd in South Africa.

‘It has a critical role to play in South Africa’s economic recovery,’ the union federation said in response to media queries. ‘It is critical that these issues are taken into account and Anglo does not simply approach this as a transactional matter looking for the highest bidder.’

Shares in Anglo American were down 0.6% at 2,663.00 pence each in London early Wednesday. They were down 0.5% at R 618.59 in Johannesburg.

BHP was down 0.6% to 2,280.00p in London. They were down 0.8% to R 528.81 in Johannesburg. They had closed down 0.1% at A$43.38 in Sydney on Wednesday.

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