Mining behemoth BHP has terminated its latest attempt to acquire rival Anglo American after the London-listed company rejected its approach, effectively clearing the path for Anglo’s planned merger with Canadian miner Teck Resources.
The Australian firm had recently rekindled interest in acquiring Anglo American, more than twelve months after abandoning a previous £39 billion takeover effort. This latest development comes as shareholders prepare to vote on the proposed $53 billion combination between Anglo American and Teck Resources scheduled for early December.
In a market statement, BHP confirmed it had engaged in preliminary discussions but would no longer pursue a combination with Anglo American, instead focusing on its internal growth strategy. The company maintained that a merger would have created significant value but expressed confidence in its standalone prospects.
Under UK takeover regulations, BHP is now prohibited from making another bid for Anglo American for six months unless material circumstances change substantially.
Anglo American’s extensive copper reserves have been a primary driver of acquisition interest, given the metal’s critical role in renewable energy infrastructure and electric vehicle manufacturing. This marks the fourth unsuccessful attempt by BHP to combine with Anglo American since last year’s protracted takeover efforts.
The previous BHP proposal faced strong opposition from Anglo American’s board, which criticized the complex terms requiring divestment of South African operations as unattractive. Anglo American’s share price has appreciated significantly since BHP’s initial interest emerged last spring.
The pending Teck Resources merger still requires regulatory approvals across multiple jurisdictions, including China, the United States, and Canada. Industry analysts suggest the consolidation could stimulate further merger activity within the mining sector while potentially deterring other acquisition attempts.
