Staff Reporter
Prominent mining company, Anglo American has turned down an enhanced takeover bid from the world’s largest miner and its rival, BHP, which was valued at approximately $42.7 billion.
The rejection came as Anglo American argued that even the revised offer significantly undervalued its business. Anglo also dismissed an earlier bid of $39 billion from BHP last month, terming it as opportunistic.
The improved takeover offer arrived on the heels of a bleak financial year for Anglo American, during which annual profits were nearly wiped out, compelling the company to write down the value of certain operations.
As BHP expressed disappointment with the fresh rejection, maintaining that a merger between the two entities would yield substantial value for their respective shareholders.
Anglo American possesses coveted copper assets in Chile and Peru, making it an appealing target for competitors.
Additionally, Anglo American boasts a diverse portfolio of mines encompassing various resources such as platinum and iron ore.
Industry analysts have noted that Anglo American has been striving to undergo restructuring efforts for an extended period, but has yet to achieve its desired objectives.
