Chris Ratcliffe | Bloomberg | Getty Images
LONDON — BHP Group said Wednesday it believes an extension of negotiations with takeover target Anglo American is necessary as the deadline for talks approaches later in the session.
The Australian mining company said in a statement it had proposed a number of “socio-economic measures” to address concerns over its offer, but added more time was needed for discussions.
The offer values the company at £38.6 billion ($49.2 billion), according to previous Reuters calculations.
“BHP believes that a further extension of the deadline is necessary to allow for further engagement on its proposal,” it said in a statement.
Rival miners have until 5pm on Wednesday London time to reach an agreement following a one-week extension of last week’s deadline.
Anglo American told CNBC it would respond to BHP’s request “in due course.”
Shares in Anglo American fell 2.2% at market open, before paring their losses slightly to trade 1.3% lower. BHP shares rose 1.2%.
BHP Group’s exceptional takeover bid is part of an effort to create a copper mining heavyweight and capitalize on the base metal’s essential role in the energy transition green.
Anglo has rejected BHP’s previous offers, saying they undervalued the company and its prospects.
The British mining company also raised concerns over requests to separate two of its South African entities, which company chairman Stuart Chambers said would create “substantial uncertainty” and risk for management. of the company.
News Source : www.cnbc.com
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