BHP Seeks Further Extension of Deadline For Anglo American Offer

On Wednesday, BHP Group (NYSE: BHP) said it was seeking an additional extension to the deadline for its potential Anglo American (LON: AAL) takeover offer. The original deadline was set for May 29, 2024.

This follows Anglo American's rejection of BHP's £38.6 billion offer last week.

BHP welcomed the initial extension as a chance to address Anglo American's concerns regarding the deal structure. Since then, BHP engaged with Anglo American to propose a range of socio-economic measures aimed at resolving these issues.

These measures include the unbundling of Anglo American's platinum and iron ore assets in South Africa, which would continue to be listed on the Johannesburg Stock Exchange (JSE).

BHP believes that its revised proposal, which includes significant economic benefits and risk mitigation strategies, provides a viable pathway for regulatory approvals and addresses the concerns raised by Anglo American.

The proposed measures would maintain employment levels, support local procurement, and enhance social investments in South Africa while also ensuring that South African stakeholders benefit from the mining sector.

In addition, BHP has indicated its willingness to discuss an appropriate reverse break fee if regulatory approvals are not met.

It believes that an additional extension will allow for further engagement and refinement of its proposal, which it asserts offers substantial risk protection and significant value uplift for Anglo American shareholders.

While BHP remains confident in the benefits of the proposed merger, it acknowledges that there is no certainty an agreement will be reached.