BHP Group BHPLF is making a second bid for mining rival Anglo American PLC NGLOY in an attempt to scuttle a proposed merger with Teck Resources Ltd. TECK-B-T two weeks before a critical shareholder vote.
BHP, the world’s largest mining company, made a preliminary takeover offer to London-based Anglo in the past week, after making an unsuccessful US$39-billion bid for the company in 2024, according to two sources familiar with the process.
The Globe and Mail agreed not to name the sources because they are not permitted to speak for the companies. Bloomberg first reported on the potential transaction on Sunday.
On Sunday, spokespersons for BHP and Anglo declined to comment. The two miners may be forced to issue press releases prior to the opening of trading on their home exchanges in Australia and Britain.
BHP, Anglo and Teck are all major copper producers and executives at all three companies are attempting to boost reserves of what BHP calls a “future facing mineral” critical to a lower-emission economy.
BHP made its move ahead of a scheduled Dec. 9 vote by shareholders in both Anglo and Vancouver-based Teck on a merger of the two companies. Analysts predict the merger will be approved.
In September, Anglo and Teck surprised the mining community by announcing a merger of equals, with no takeover premium, that would create the world’s fifth-largest copper miner.
The new company will be renamed Anglo Teck, and will be worth about US$57-billion. Anglo shareholders will end up owning 62.4 per cent of the company and Teck shareholders will own 37.6 per cent.
BHP has a US$132-billion market capitalization.
Last year, Anglo successfully rebuffed BHP by claiming its takeover offer, which involved spinning out Anglo divisions, undervalued the British company. Since then, Anglo exited platinum mining and announced plans to sell its legacy diamond business, De Beers.