Source - Alliance News

Anglo American PLC on Wednesday said it can ‘unlock significant value for its shareholders’, as the miner goes at it alone after successfully fending off a takeover tilt from larger peer BHP Group Ltd.

BHP just before the closing bell ruled out making a firm offer for smaller mining peer Anglo American, as its attempts to ‘grow the pie of value for both sets of shareholders’ were rebuffed.

BHP Chief Executive Officer Mike Henry said: ‘We were unable to reach agreement with Anglo American on our specific views in respect of South African regulatory risk and cost and, despite seeking to engage constructively and numerous requests, we were not able to access from Anglo American key information required to formulate measures to address the excess risk they perceive.

‘We remain of the view that our proposal was the most effective structure to deliver value for Anglo American shareholders, and we are confident that, working together with Anglo American, we could have obtained all required regulatory approvals, including in South Africa.’

Anglo American had rejected an extension to BHP’s ’put up or shut up’ date. Last week, the Melbourne-based miner’s third £34 billion takeover proposal was rejected by London-based Anglo American.

BHP offered 0.8860 of a BHP share for each Anglo share. The all-share offer by BHP required Anglo American to move away from its operations in South Africa and complete two demergers of its shareholdings in Anglo American Platinum and Kumba Iron Ore.

Earlier this month, to fend off the BHP approach, Anglo unveiled a new ‘radical’ strategy that will see it keep copper and iron ore assets, while getting rid of platinum and diamond businesses.

Anglo American Chair Stuart Chambers said Wednesday: ‘Anglo American has set out a clear pathway to accelerate delivery of its strategy and to unlock significant value for its shareholders. Our shareholders will benefit from value transparency and undiluted exposure to a simpler portfolio of world class assets, consistently stronger operational performance, and highly attractive growth in copper, premium iron ore and crop nutrients. Anglo American’s management team, supported by the board, is fully focused on delivering the plans it has set out to accelerate value delivery, and doing so at pace.’

Anglo American shares fell 3.9% to 2,458.00 pence each in London on Wednesday. The firm has a £32.90 billion market value. BHP rose 0.1% to 2,338.00 pence, giving it a market capitalisation of £118.19 billion.

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