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Anglo rejects BHP request for extension to $49 billion takeover talks deadline

Published 05/29/2024, 04:05 AM
Updated 05/29/2024, 06:01 AM
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Investing.com -- Anglo American has rejected a request from BHP Group (NYSE:BHP) to further extend the deadline for negotiations over its planned takeover of the British miner. 

BHP (LON:BHPB) had previously asked for more time to hold talks with Anglo American, as a deadline for the Australian miner to submit a formal offer for its rival loomed large.

Last week, London-listed Anglo (LON:AAL) rejected a bid from BHP that was reportedly worth 38.6 billion pounds ($49.20 billion), although negotiations were given a week-long extension to a prior deadline. The firms now have until 5 p.m. London time on Wednesday to reach an agreement.

In a statement to Australia's securities exchange, BHP had said another extension would allow for "further engagement on its proposal."

BHP, the world's largest listed mining group, has put forward a range of measures aimed at alleviating Anglo's worries regarding the deal's structure, which comprises Anglo unbundling its platinum and iron ore assets in South Africa.

"BHP is confident that the measures it has proposed to the Board of Anglo American provide a viable pathway to resolve the matters raised by Anglo American," it said. "BHP has considered market precedent transactions and believes that the risks are quantifiable and manageable."

But, in a filing with the London Stock Exchange, Anglo said BHP has still not addressed its "fundamental concerns relating to the disproportionate execution risk associated with the proposed structure and the value that would ultimately be delivered to Anglo American (JO:AGLJ)'s shareholders." 

Anglo added that its board has subsequently unanimously concluded that there is "no basis" for another deadline extension.

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