BHP Group has suggested an extension of the deadline to consider its proposal for Anglo American to allow for further engagement.
The Australian mining giant said in an update it had proposed a range of socioeconomic measures intended to address Anglo American’s concerns regarding its proposed transaction structure.
BHP is confident the measures it has proposed to the London-listed company’s board provide a viable path to resolve the matters raised by Anglo American and would support South African regulatory approvals.
BHP believes the proposed measures would provide greater economic benefits to South Africa than Anglo American’s Accelerating Value Delivery plan, mitigate perceived value and completion uncertainty and ensure that any costs are not borne disproportionately by Anglo American shareholders.
BHP has indicated it would also be willing to discuss an appropriate reverse break fee, payable by BHP, on failure to achieve the necessary anti-trust and regulatory approvals, including in South Africa.
BHP said on Wednesday it continued to believe there would be clear benefits to the South African government, economy and communities from Anglo Platinum and Kumba Iron Ore becoming major standalone entities listed on the Johannesburg Stock Exchange, or JSE, with significant increased JSE index weightings.
Anglo Platinum and Kumba Iron Ore would be independently run by established South African-based management teams.
On May 22, 2024, Anglo American rejected BHP’s third proposal to takeover for Stg29.34 ($A56) a share.
Under the new proposal, BHP has increased the number of shares offering to Anglo American, but it still requires the latter to demerge its shareholdings separately in Anglo American Platinum Limited and Kumba Iron Ore Limited to Anglo American’s shareholders.
However, Anglo American denied the proposal, stating the demerger along with the takeover would likely take 18 months, which would badly affect the material transaction and shareholder value.
This post was originally published on Michael West.