The deadline for Australian mining giant BHP Billiton (BHP.US) to make an official takeover offer from Anglo-American Resources is just a few hours away.
The Zhitong Finance App learned that it is only a few hours until the deadline for Australian mining giant BHP Billiton (BHP.US) to make an official takeover offer from Anglo-American Resources. This deal will create a global copper giant and is widely known by the media as the “acquisition of the century” of the global mining industry. Anglo-American Resources has rejected two non-binding offers from BHP Billiton and announced its aggressive restructuring plan. The last offer was $43 billion.
According to British takeover regulations, BHP Billiton must announce the acquisition intention before 5 p.m. London time on Wednesday, otherwise it will be forced to withdraw for at least six months.
The problem is that Duncan Wanblad, CEO of Anglo-American Resources Group, has so far refused to negotiate with BHP Billiton, criticizing the plan for being too complicated and underestimating its stock price.
People familiar with the matter revealed that the focus of discussions over the past few days was whether it could put forward a sufficiently attractive offer to allow the shareholders of Anglo-American Resources Group to push the company into negotiations. The person familiar with the matter mentioned above said that it is still very likely that BHP Billiton will abandon the acquisition.
Mike Henry, CEO of BHP Billiton, made no secret of his desire to expand its copper business, and Anglo-American Resources' copper mines have long been regarded as a valuable asset in their vast investment portfolio. Copper prices have risen to record levels in recent weeks, providing a dramatic backdrop to an open battle between these two mining giants. BHP Billiton competitors, including Rio Tinto (RIO.US), are also expanding their copper business.
At current prices, BHP Billiton's latest unofficial offer values Anglo-American Resources at around £29.49 per share. However, shares of Anglo-American Resources closed at £26.87 in London on Tuesday, indicating that investors are still skeptical about whether the current deal can be reached.
BHP Billiton wants Anglo-American Resources to first divest its South African platinum and iron ore business before making an acquisition. Under the Anglo-American Resources replacement plan, the company will exit the platinum, diamond, and coal business, focus on copper and iron ore business, and slow down a fertilizer project.
BHP Billiton's Sydney-listed stock has been rising for six consecutive trading days. As of Wednesday afternoon local time, the stock had risen 0.6% to 46.32 Australian dollars.