City speculation is intensifying regarding a potential renewed takeover attempt of Anglo American by mining giant BHP. The previous £39 billion bid, which faltered in 2024, could see fresh momentum as Anglo American has begun implementing the very changes its suitor originally demanded.
The core attraction remains Anglo’s copper assets, which are increasingly vital for global decarbonisation efforts. Copper’s essential role in electric vehicles and power grids positions it as a strategic metal for the future, making Anglo’s portfolio particularly appealing to BHP.
Anglo American’s recent strategic moves have notably aligned with BHP’s original vision. The company has successfully raised £4 billion through coal mine divestments, initiated the separation of its platinum division, and is exploring options for De Beers amidst challenging diamond market conditions.
Market observers note that Anglo’s shares have maintained their post-bid gains, whilst BHP’s stock has declined 16 per cent, primarily due to iron ore market weakness. Elliott Investment Management’s £1 billion stake, secured before BHP’s interest became public, suggests sophisticated investors recognise Anglo’s underlying value.
BHP’s copper supply challenges add urgency to potential acquisition plans. The company faces production gaps as existing mines mature, making Anglo’s assets increasingly attractive. Recent investor meetings in South Africa, where BHP CEO Mike Henry engaged with stakeholders, may indicate efforts to smooth potential transaction paths.
Despite BHP’s public statements suggesting they have “moved on” from Anglo, industry experts remain convinced that consolidation in the copper sector is inevitable. With Anglo’s restructuring advancing and copper’s strategic importance growing, the possibility of a renewed bid appears increasingly likely in 2025.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.