New BHP Bid for Anglo Now "on Ice"
January 26, 25
(IDEX Online) - BHP is putting plans for a renewed Anglo American bid "on ice", according to a Financial Times report yesterday (25 January).
It contradicts a report just two weeks ago in the Sunday Times, which said such a bid was "almost oven-ready".
The latest report claims the rise in UK-based Anglo's share price - up 39 per cent in the last year - after it embarked on a restructuring plan, has now made it too expensive.
BHP, the Australia-based mining giant, made an unsuccessful bid for Anglo - parent company of De Beers - last April, increasing from its all-share offer of $39bn to just over $49bn before it was rejected by the Anglo board.
A six-month cooling-off period imposed by UK regulators is now over, so it is free to bid again.
The Financial Times cites three unnamed sources who say a new takeover bid in the short term would be too costly because of its increased share price.
As Anglo's share price has soared, BHP has dipped 17 per cent in the last year.
The future of De Beers remains unclear. After sales slump in 2023, Anglo said it would be divested or demerged, together with other non-core assets, so it could focus on copper and other more profitable ventures.