Australian mining giant BHP has unveiled proposals for a £31bn acquisition of rival Anglo-Americans, potentially accelerating the departure of Britain's leading companies from the City of London.
The proposed acquisition of London-listed Anglo would stand as one of the largest deals in the global mining industry over the past decade. This move comes as mining companies vie to dominate the market for copper, a highly sought-after commodity within the clean energy sector. Within hours of the proposal's emergence, criticism of the deal arose from some of Anglo American's major investors, including the South African government. This presents a potential obstacle to BHP's plans.
South African Mining Minister Gwede Mantashe expressed opposition to the takeover, citing the country's previous negative experience with BHP. However, he clarified that this stance did not represent an official government position. The state-owned Public Investment Corporation (PIC), Anglo American's largest shareholder, holds significant influence, particularly as many of the company's mines are situated in South Africa.
Shareholders in London dismissed the BHP offer as too low. Legal & General Investment Management, one of its largest investors, described the approach as “highly opportunistic” and “unattractive” because it undervalued the long-term prospects for Anglo American. In 2022, BHP relocated its primary listing from the UK to Australia.
If the takeover of Anglo American goes ahead, it would result in one of the London Stock Exchange's 25 largest companies departing.
