FTSE 100 miner Anglo American has rejected rival BHP’s request for extra time to table another takeover bid.
BHP – which has so far seen three bids rejected – the most recent of which valued it at £39billion, this morning asked for an extension to its ‘put up or shut up’ deadline beyond its current countdown to 5pm this afternoon.
The Australian firm laid out a number of measures it said addressed concerns about complexity and potential regulatory barriers standing in the way of a deal.
But Anglo said in a statement that BHP has ‘not addressed’ its ‘fundamental concerns’ related to the ‘disproportionate execution risk’ associated with the structure of a the proposed deal and value delivered to shareholders.
Denied: Anglo American rejects BHP’s calls for an extension to put up or shut up deadline – potentially killing biggest mining deal in history
BHP’s proposals, which would mark the largest mining industry deal in history if completed, include a requirement for Anglo to demerge and sell its publicly-listed South African platinum and iron ore divisions.
Anglo has said such a move would be ‘unprecedented’ and would likely face regulatory opposition in South Africa and elsewhere.
BHP said it could pay an ‘appropriate reverse break fee’ if it does not gain the required antitrust and regulatory approvals in South Africa.
It added these measures would ‘provide substantial risk protection for Anglo American shareholders and supplement the significant value uplift that Anglo American shareholders will receive from the potential combination’.
In response, Anglo said this approach ‘does not sufficiently address’ its concerns about ‘disproportionate execution and value risks and uncertainty over an extended period’.
Anglo has unveiled a separate plan to divest or spin off a significant chunk of its operations, which it says stands in ‘clear contrast to’ the BHP bid.
Anglo added: ‘Taking into consideration detailed feedback from the board’s extensive engagement with Anglo American’s shareholders and stakeholders, the board has therefore unanimously concluded that there is no basis for a further extension to the PUSU deadline.’
Anglo American shares were down 2.5 per cent to 2,494p by late afternoon on Wednesday, limiting 2024 gains to roughly 27 per cent.
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