On Tuesday, May 28, VCPost reported that well-known UK companies, Royal Mail and Anglo American are preparing for foreign takeovers.
However, in a development that could impact the mining industry, Anglo American has declined BHP Group's request to extend the discussions on the proposed $49 billion takeover. Per CNBC, this rejection suggests there may be a deadlock or lack of agreement between the two companies as they approach the deadline for finalizing any deal.
Despite BHP's efforts to sway Anglo American with socio-economic incentives, including investment pledges and local employment guarantees, the British miner remains steadfast, citing unresolved concerns over the proposed deal's inherent risks.
As the deadline for the takeover bid approaches, the high-stakes negotiations between the two mining giants are uncertain, considering that experts see it as a possible mega deal.
READ MORE : Anglo American Announces Plans to Leave Diamond, Platinum, Coal Mining to Avoid BHP Acquisition Plans
Anglo American and BHP
Anglo American and BHP Group are both major players in the mining industry:
Specifically, Anglo American engages in global exploration, extraction, processing, and marketing of various resources, such as iron ore, diamonds, copper, platinum, and coal. Meanwhile, BHP Group, previously known as BHP Billiton, operates in a similar capacity, adding nickel and petroleum to its portfolio.
BHP's takeover of Anglo American could achieve more significant economies of scale, leading to cost savings and improved profitability since the two mining heavyweights already boast assets and operations that no other mining companies have.
The UK-based mining company previously indicated that it is unlikely to entertain BHP's acquisition proposal, opting to exit diamond, platinum, and coal mining to prevent the potential takeover.
Anglo American has not yet provided an official statement explaining their decision.
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