By Scott Murdoch and Anousha Sakoui
(Reuters) -British multinational miner Anglo American (JO:) mentioned on Thursday it “obtained an unsolicited, non-binding and extremely conditional mixture proposal” from international mining large BHP Group (NYSE:).
London-listed Anglo American, which owns 85% of De Beers diamond enterprise, had a market capitalisation of $36.71 billion as of Wednesday’s shut, based on LSEG knowledge.
In an announcement, Anglo American mentioned its board was reviewing the all-stock buyout proposal from BHP.
“There might be no certainty that any supply might be made nor as to the phrases on which any such supply is likely to be made,” the assertion mentioned.
BHP declined to remark when requested about earlier experiences about preliminary talks with Anglo American.
A deal could be preceded by separate demergers by Anglo American of its total shareholdings in Anglo American Platinum and Kumba to Anglo American shareholders.
BHP, best-known for mining iron ore, , nickel and metallurgical coal, had a market capitalisation of about $148.71 billion.
If the Anglo American deal got here to fruition, it might be the second main acquisition for BHP in a couple of yr after its 2023 buy of Oz Minerals.
Anglo American mentioned in February it might embark on a assessment of property after a 94% plunge in annual revenue and a sequence of writedowns. It has seen a fall in demand for many of the metals it mines and took a $1.6 billion impairment cost on its De Beers diamond enterprise.
The worldwide mining sector has seen a latest slew of merger and acquisitions regardless of rising considerations across the financial outlook of one of many world’s largest metals purchaser, China.
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Extra broadly, M&A exercise has registered an uptick within the first few months of this yr, together with mega offers.
Each the mining corporations have just lately recognized potash as an necessary enterprise which might complement their mining operations as meals demand grows.
BHP is at the moment specializing in its Jansen potash undertaking within the Canadian province of Saskatchewan whereas Anglo American has its hopes on the Woodsmith potash mine in Yorkshire.
($1 = 1.5396 Australian {dollars})