Anglo American, a major mining company, is facing pressure from key shareholders, including BlackRock, to extend talks with BHP Group regarding a proposed 38.6 billion pound ($49.18 billion) mining merger. According to the Financial Times, BHP, the world’s largest listed mining group, now has until May 29 to make a firm bid for Anglo American. If BHP fails to do so, it will be required to walk away for at least six months under the UK’s takeover rules.
BlackRock, along with other significant shareholders like Ninety One and Sanlam Investments, have encouraged meaningful negotiations with BHP. However, concerns have been raised about the deal structure, which requires Anglo to spin off its stakes in its South African platinum and iron ore units.
U.S.-based asset manager BlackRock holds a 9.6% stake in Anglo and is also a shareholder in BHP. BHP is reportedly standing firm on the structure and value of its latest takeover proposal, focusing on addressing execution risks to allay Anglo’s concerns.
While BHP is considering smaller, creative structures to better share the risks, Anglo’s sources cited by the FT believe that the structure needs altering or BHP must increase its offer. As of now, Anglo American, BHP Group, and BlackRock have not provided any comments on the matter.
The outcome of these negotiations will have significant implications for the mining industry and the future of both companies involved. Stay tuned for further updates on this developing story.