BHP is keeping its options open regarding the prospect of a renewed bid for Anglo American despite having already solidified its copper portfolio.
The diversified resource group was yesterday forced to double back on chairman Ken Mackenzie’s statements to shareholders earlier in the week.
Mackenzie told shareholders this week that BHP has moved on after Anglo American rebuffed its offer.
BHP, which was mainly interested in Anglo American’s copper portfolio after suggesting the spinning off of units such as Anglo American Platinum as a condition to its offer, yesterday said it now has a firm copper portfolio.
“We have achieved a world-leading position in copper, which is key to renewable energy, electric vehicles and, increasingly, data centres,” said Mackenzie in his address to shareholders.
After the rejection of its nearly $43 billion (R788bn) offer by Anglo American, BHP had now moved on from its bid after being turned down by shareholders in the London and Johannesburg listed mine, Reuters reported.
“We made an approach to Anglo American earlier this year…unfortunately, Anglo American shareholders had a different view, and they thought there was more value in the plan that their management wanted to execute. And so they moved on. And quite frankly, so have we,” Mackenzie was quoted saying.
Yesterday, BHP made an about-turn on this, saying Mackenzie’s statements did not constitute an intention not to fulfil another offer provided for under London listing rules.
“BHP clarifies that these comments were not intended to be a statement to which Rule 2.8 of the UK City Code on Takeovers and Mergers (UK Code) applies, nor intended to carry any other consequences under the UK Code,” BHP said in a statement.
BHP senior executives recently visited South Africa, reportedly meeting shareholders in Anglo American. This fuelled speculation that the company was lining up another bid before the lapse of another opportunity provided by London listing rules at the end of November.
“BHP remains bound by the Rule 2.8 restrictions set out in its announcement dated 29 May 2024 which apply for six months from the date of that announcement, subject to the reservations set out in that announcement,” said BHP in a statement.
It further stated that The UK Takeover Panel had already confirmed that the comments by Mackenzie would not be treated “as a statement of intention not to make an offer” in respect of Anglo American.
Shares in BHP had slumped by 2.06% to R492.39 by 4pm on the JSE yesterday despite a 1.36% strengthening in the past seven days. Anglo American, on the other hand, was 0.22% weaker in the same bourse in late afternoon trade at R551.94 per share.
Mackenzie has described BHP’s 2024 full year as strong, after it “performed well” financially. This was amid China and supply-side surpluses for some commodities which is contributing to price volatility.
“We faced these challenges earlier in the year when we made the tough but necessary decision to place our Nickel West operations and West Musgrave project into temporary suspension,” said Mackenzie.
The company is deliberately and methodically reshaping its portfolio to increase its exposure to future facing commodities and higher-quality steelmaking materials, including copper.
It was also “developing a position” in potash that will contribute to food security and more sustainable land use to help feed a rapidly growing global population.
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