BHP Seeks Another Extension to Takeover Talks With Anglo American — Update
By Christian Moess Laursen
Australian mining giant BHP said a further deadline extension is needed before it can reach an agreement with Anglo American on a $50 billion takeover of its London-based rival.
BHP on Wednesday outlined a range of measures aimed at addressing Anglo's concerns about the structure of the proposed deal.
Last week, Anglo rebuffed BHP's latest bid--its third--as it deemed the deal too complex, echoing the reason behind the previous two dismissals. The offer valued Anglo at $49.87 billion.
BHP's offer proposes the spin off of Anglo's South African units Anglo American Platinum and Kumba Iron Ore--a condition that Anglo deemed too complex.
Among the proposed measures outlined Wednesday, the two units would retain listings in Johannesburg and be run by South Africa-based management teams. Headcount at Anglo's Johannesburg office would be maintained.
BHP said it is confident these measures offer a viable way of resolving Anglo's concerns, and would support South African regulatory approvals. The integration challenges are quantifiable and manageable, and the costs associated with them have already been factored into the offer, BHP said.
Anglo has so far said it favored its prospects as a standalone company. To fend off BHP, it accelerated a business overhaul to break itself up.
BHP said Wednesday that it believes its proposed measures would provide greater economic benefits to South Africa than Anglo's planned restructure.
BHP is open to discuss paying a termination fee if the deal fails to achieve necessary antitrust and regulatory approvals, it said.
Anglo American didn't immediately respond to a request for comment.
Write to Christian Moess Laursen at christian.moess@wsj.com
(END) Dow Jones Newswires
May 29, 2024 03:18 ET (07:18 GMT)
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