Opportunistic

Anglo American, a UK mining company, has rejected BHP's €36 billion takeover bid, considering it "opportunistic" and significantly undervaluing the company.

Anglo American's board believes the offer goes against shareholder interest, and BHP's proposal values Anglo American's shares at £25.08.

Anglo American is being pressured by BHP to merge, but Anglo is criticizing the proposal due to the requirement for Anglo to spin off its platinum and iron ore businesses in South Africa.

Anglo's chair, Stuart Chambers, has stated that the proposal undervalues Anglo's prospects and creates significant uncertainty and risk for Anglo's shareholders and stakeholders.

The merger comes after Anglo American reported a 94% decrease in profits last year, and BHP is looking to increase its copper production through the acquisition.

This would be BHP's second major acquisition in a year, following the purchase of copper miner Oz Minerals in 2023.

Anglo is a mining company with significant copper production in South Africa, Chile, and Peru.

Copper makes up 30% of Anglo's total output.

Due to copper's importance in the green energy transition, global demand for the commodity is rising and is predicted to continue growing.

Copper prices have increased by 15% this year, nearing $10,000 a tonne.

If a proposed merger goes through, the combined company would produce approximately 10% of the world's copper supply.