BHP Group Ltd on Wednesday drew a line under its failed pursuit of smaller mining peer Anglo American PLC, saying it has ‘moved on’.
BHP Chair Ken MacKenzie said at the miner’s annual general meeting in Brisbane, Queensland, that BHP believed the two companies could have created ‘something unique and special’. He described a BHP-Anglo tie-up as a ‘one plus one equals three opportunity’.
‘Unfortunately, Anglo American shareholders had a different view, and they thought there was more value in the plan that their management wanted to execute. And so they moved on. And quite frankly, so have we,’ MacKenzie added.
In May, Anglo American said it can ‘unlock significant value for its shareholders’, as the miner decided to go it alone after successfully fending off a takeover tilt from BHP.
BHP in May ruled out another Anglo American approach as its attempts to ‘grow the pie of value for both sets of shareholders’ were rebuffed.
Melbourne-based BHP’s third £34 billion takeover proposal was rejected by London-based Anglo American.
BHP offered 0.8860 of a BHP share for each Anglo share. The all-share offer by BHP required Anglo American to hive off its operations in South Africa and complete two demergers of its shareholdings in Anglo American Platinum Ltd, or Amplats, and Kumba Iron Ore Ltd.
Earlier in May, to fend off the BHP approach, Anglo had unveiled a new ‘radical’ strategy that will see it keep copper and iron ore assets, while getting rid of platinum arm Amplats and diamond business De Beers.
It confirmed it would keep Kumba, however, as its focus will be on ‘world-class assets in copper, premium iron ore and crop nutrients’.
BHP shares were down 1.3% in London on Wednesday morning to 2,181.00 pence. In Johannesburg, they were down 2.1% to R 497.71, while in Sydney, they closed up 0.2% to A$43.11.
Anglo was down 3.3% to 2,401.00p in London. It was down 4.1% to R 548.07 in Johannesburg. Anglo American Platinum was down 4.3% at R 744.12. Kumba was down 2.2% at R 347.00.
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