BHP’s comment came after a Bloomberg News report said on Sunday that the firm has renewed its efforts to buy the London-listed miner after a failed $49 billion bid last year.
- BHP said it continues to believe that a deal with Anglo American “would have had strong strategic merits and created significant value for all stakeholders.”
- Teck and Anglo American agreed to merge in September in one of the biggest mining deals in history.
- The shareholders of Teck and Anglo American are scheduled to vote on the merger next month.
BHP Group (BHP) stock is expected to garner attention on Monday after the firm ended its pursuit of another miner, Anglo American, after preliminary talks.
“Whilst BHP continues to believe that a combination with Anglo American would have had strong strategic merits and created significant value for all stakeholders, BHP is confident in the highly compelling potential of its own organic growth strategy,” the company said in a statement.
Clears Hurdle To Anglo-Teck Merger
BHP’s comment came after a Bloomberg News report said on Sunday that the firm has renewed its efforts to buy the London-listed miner after a failed $49 billion bid last year. The report stated that Anglo American rejected the proposal following a review that found the offer was not superior to its proposed merger with Canada’s Teck Resources.
Teck and Anglo American agreed to merge in September in one of the biggest mining deals in history. The combined firm is expected to produce about 1.2 million tonnes of copper annually, amid a surge in demand for the metal, used in everything from wires to electric vehicles. The shareholders of Teck and Anglo American are scheduled to vote on the merger next month.
“Unease that a combined Anglo-Teck entity could slip out of reach as a future target” may have driven BHP’s second offer, Bloomberg Intelligence analysts Alon Olsha and Grant Sporre reportedly wrote.
What Are Stocktwits Users Thinking?
Retail sentiment on Stocktwits about BHP was in the ‘neutral’ territory, while traders were ‘bullish’ about Teck.
However, Anglo American and Teck would require approval from regulators in several countries, including Canada and the U.S., before proceeding with the deal. Earlier this month, Canadian Industry Minister Melanie Joly stated that she expects to reach a decision by next month.
“What I’ve said is that what Anglo Teck was offering was not enough. And I think that Canadians should get more out of this merger of equals, and the process is continuing,” she said. Teck CEO Jonathan Price noted in September that the company’s pledges to keep its head office in Vancouver will remain in place “in perpetuity.”
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