Investors in Anglo American’s South Africa operations receptive to enhanced BHP offer

Anglo American, a key player in South Africa’s mining industry, is facing a potential takeover bid from Australian mining giant BHP. Despite concerns from the government about the impact on the country’s economy, Anglo’s major shareholders are open to the idea of a takeover.

The investors, holding more than 15% of Anglo, have indicated that BHP would need to sweeten its offer, but they are not opposed to the acquisition in principle. This openness comes in the face of opposition from mining minister Gwede Mantashe, who expressed personal reservations about the deal.

The potential takeover is a sensitive matter for South Africa, given Anglo’s long history in the country’s economy. The ruling African National Congress is closely monitoring the situation, especially in an election year. The local competition regulator will also play a crucial role in determining the outcome.

Despite the complexities of the deal, local fund managers are open to a potential acquisition, provided the offer is attractive. BHP is preparing a formal bid that could transform the company into a mining supermajor, with Anglo’s copper mines in Latin America as a prized asset.

The pressure is on BHP to make a compelling offer, as Anglo’s management and shareholders await the formal bid. The outcome of this potential takeover bid could reshape the mining industry and have far-reaching implications for both companies and the South African economy.