BHP Group Ltd on Monday confirmed that made an improved offer to buy mining peer Anglo American PLC last week, but said the offer was rejected by the Anglo board on Monday.

The new all-share offer from Melbourne-based BHP values London-based Anglo at £34 billion, up from £31.1 billion under its previous offer. BHP is offering 0.813 of a BHP share for each Anglo share, giving a current value to Anglo shares of £27.53 each, based on BHP’s own price.

Anglo shares were down 0.5% to 2,759.96 pence each in London on Monday afternoon soon after the BHP announcement. They were down 2.2% to R 627.22 in Johannesburg.

BHP has its primary listing in Sydney. In London, its shares were quoted at 2,295.00p, up 0.1%.

The revised proposal represents a 15% improvement in the merger exchange ratio, BHP noted. It increases the holding that Anglo shareholders would have in the combined entity to 16.6% from 14.8% previously.

BHP has a market capitalisation of £116.07 billion, while Anglo’s market cap is £36.90 billion.

BHP also offered Anglo two positions of the board of the combined company.

However, BHP said that Anglo rejected its revised proposal on Monday.

‘BHP put forward a revised proposal to the Anglo American board that we strongly believe would be a win-win for BHP and Anglo American shareholders,’ said BHP Chief Executive Officer Mike Henry. ‘We are disappointed that this second proposal has been rejected.’

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.

South Africa’s state-owned asset management firm Public Investment Corp last week signalled that it remains open-minded about BHP’s bid for Anglo-American. PIC has a 7.0% stake in Anglo American, according to Morningstar.

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