BHP makes renewed takeover approach to Anglo American: sources

[MELBOURNE] BHP Group has made a renewed takeover approach to Anglo American, the London-listed miner that is itself seeking to reshape the industry with an acquisition of Canada’s Teck Resources, people with knowledge of the matter said.

The commodities giant has made overtures to Anglo American in recent days, the people said, asking not to be identified because the information is private.

Shares of Anglo American have gained 17 per cent in London trading this year, giving the company a market value of about £31.9 billion (S$54.5 billion). BHP has a market value of more than US$130 billion.

Anglo American agreed in September to acquire Teck in an all-stock deal that would rank among the biggest ever in the mining industry, creating a US$50 billion producer of copper, zinc and other metals across multiple continents. That transaction has not closed yet.

Shareholders of both companies are set to vote on the transaction on Dec 9, and it still needs the approval of regulators in countries including China, the US and Canada.

Bloomberg News reported last week that Canada is putting pressure on Anglo to make stronger commitments to executive and management jobs at its proposed Vancouver headquarters as a condition of taking over Teck, which currently has a market value of about US$19 billion.

BHP tried to acquire Anglo American for US$49 billion last year, before eventually walking away after a five-week public battle.

The deliberations are ongoing and there’s no certainty they will lead to a deal between BHP and Anglo, the people said. Representatives for BHP and Anglo declined to comment. BLOOMBERG