Anglo American Rejects BHP's $42.7 Billion Takeover Bid, Announces Restructuring Plan

May 14, 2024, 06:28 AM

Anglo American has rejected a revised £34 billion ($42.7 billion) takeover bid from BHP Group, stating that the offer significantly undervalues the company. This is the second time Anglo American has turned down a proposal from BHP, which had initially offered $39 billion. The revised bid included a 15% premium over the initial offer. In response to the takeover attempts, Anglo American has announced a major restructuring plan. The company plans to exit its De Beers diamond business, as well as its platinum and coal mining operations, in a bid to focus on copper and other energy transition metals. Anglo American's CEO stated that the restructuring was accelerated by BHP's takeover bid and aims to unlock value for investors. The rejection sets the stage for a potential hostile takeover battle, with Anglo American citing significant execution risks in BHP's proposal.