BHP withdraws latest bid for Anglo American as merger with Teck advances

Mining sector consolidation took a significant turn as BHP, the Australian-listed mining giant, confirmed it will not pursue its attempted acquisition of Anglo American, following a firm rejection from the London-listed rival. This move ends a period of keen interest, with BHP having approached Anglo multiple times over the last year, including a high-profile £39 billion effort in the prior year.

The failed proposal coincided with the ongoing progress of Anglo American’s planned merger with Teck Resources, a Canadian mining company. Shareholders of Anglo and Teck are preparing to vote on their proposed $53 billion merger, which seeks to form one of the world’s most significant mining entities. Regulatory approval from several jurisdictions, including China, the US and Canada, remains outstanding for the transaction.

BHP announced it held initial discussions with Anglo but has now decided to focus on its own development strategy, emphasising confidence in the organic potential of its existing portfolio. The strategic value and copper reserves held by Anglo American have made it a frequent target, as copper plays a crucial role in technologies for renewable energy and electric vehicles. Despite this, Anglo’s board remained resolutely opposed to BHP’s proposals, with prior offers contingent on divesting South African operations, a stipulation that was dismissed as overly complex and unattractive.

Anglo’s shares have appreciated significantly, climbing over two thirds since early 2024 and increasing by nearly a quarter since BHP’s initial approach the previous May. Under UK city code regulations, BHP is now restricted from making a renewed bid for six months unless significant changes occur. Market analysts suggest that Anglo’s merger with Teck may signal the beginning of heightened acquisition activity within the sector, speculation bolstered by the determination shown by Anglo’s leadership to rebuff unsolicited advances and maintain control over its strategic direction.

Industry observers note that major resources takeovers remain dependent on broader economic confidence, pointing out that periods of economic uncertainty typically curtail aggressive merger strategies. As the Anglo-Teck deal moves to a vote and awaits regulatory assessment, market participants will closely watch for ripple effects among other leading mining groups.