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Anglo American's SA assets must go in any takeover, BHP insists

Date: May 7, 2024

BHP's plan to divest the South African (SA) assets of its target Anglo American is key to the strategy behind the proposed takeover and is expected to be a part of any revised offer, investors briefed on the miner's thinking said.

The "Big Australian" was rebuffed by its smaller rival on April 26 after submitting a $39 billion takeover proposal, in a plan seen as complex because it required Anglo to offload its shares in Kumba Iron Ore and Anglo American Platinum to Anglo American shareholders before any deal took place.

Anglo American owns 78.6% of Amplats and 69.7% of Kumba.

SA's government is scrutinising the proposed deal.

In comments to the Financial Times, the country's Mining Minister Gwede Mantashe said he was wary of BHP's proposal as the country's previous experience with BHP was "not positive."

But BHP sees advantages for SA in a distribution of the Kumba and Amplats shares, as it would boost the free float in those two companies, fulfilling a goal of the country's regulator, one fund manager that holds BHP shares said.

--Reuters--