BHP keeps options open: Acquisition of Anglo American remains in limbo

At the annual BHP general meeting in Brisbane, Chairman MacKenzie emphasized that the proposed acquisition of Anglo American was not deemed essential. He stated that Anglo American's shareholders were skeptical of the proposal and that the focus was now on other projects. At the same time, BHP clarified that these comments should not be considered a formal withdrawal of the offer under UK takeover regulations. After consultation with the UK Takeover Panel, BHP confirmed that MacKenzie's statements should not be interpreted as an official "no-offer" statement, thus maintaining the possibility of a future bid. The offer originally made in April by BHP aimed to gain access to Anglo's lucrative copper resources in South America, which appeared attractive given the rapid price increases of the metal in 2023. However, the acquisition proved complicated, particularly due to Anglo's assets in South Africa, which posed regulatory challenges. Since the deal has not yet materialized, BHP is now increasingly focusing on its existing assets and plans to expand the Olympic Dam mine in South Australia and the Escondida mine in Chile. Yet, these domestic projects also face challenges, as rising wage costs in the Australian mining industry could impact operating expenses. In Brisbane, hundreds of workers drew attention with protests, opposing BHP's stance on new labor laws. Despite these domestic tensions, BHP made a strategic move into South America. In July, a bid for Filo Corp was announced, which is to be realized through a joint venture with Lundin Mining. BHP is investing $2 billion for a 50% stake in the copper projects Filo del Sol and Josemaria. The current deadline for a new offer for Anglo American is November 29.