An offer for Anglo American could trigger further bids. But completing a takeover could prove an uphill struggle. Matthew Partridge reports
London-based mining giant Anglo American has become “the centre of an international tug-of-war”, says Jon Yeomans in The Sunday Times. Australian rival BHP launched an “audacious” £31bn takeover bid last week. Anglo rejected the all-share offer, claiming it “significantly undervalues” the company. Despite the rejection, news of BHP’s proposal has “electrified” the City and stoked speculation of a bidding war.
Anglo American was right to reject the offer, which at £25 a share was “too mean”, says Nils Pratley in The Guardian. Despite its “calamitous” recent history, Anglo “should be able to get back to £30 under its own steam via self-improvement”, especially given the probable recovery in the price of diamonds and platinum, currently at “cyclical lows”. Indeed, even if BHP comes back with a better offer, Anglo American should still consider other options, including “breaking itself up”, as there would be a “queue of potential bidders”, for its “prized copper mines”.
Going green
BHP has made it clear that it is primarily interested in Anglo American because of its role as one of the five largest producers of copper, a metal that BHP’s CEO sees as “a key enabler of the green revolution”, say Matt Oliver and Michael Bow in The Telegraph. Other experts agree, with the International Energy Agency predicting that annual demand for copper is likely to climb from just over 25,000 kilotons in 2022 to 35,000 by 2035 and 40,000 by 2050. In the short run, a squeeze on supplies is also likely to push prices up.
The fact that the takeover would hand BHP “control of some of the best and biggest
