Mining giant BHP in €36 billion bid to takeover rival Anglo American

BHP has made an offer of £31 billion (around €36 billion) to merge with its smaller UK competitor Anglo American.

The proposal comes after Anglo American, which had a $37.7 billion (€35.23 billion) market value at Wednesday's close, noted a 94% decrease in profits last year.

As part of the takeover offer, BHP said it would offer Anglo's stockholders £25.08 per share.

The deal, which would be one of the biggest mining mergers in years, could allow BHP to become the world's largest copper producer.

Anglo has significant mines in South Africa and also operates sites in countries like Chile, Australia and Peru.

Given copper's crucial role in the green energy transition, global demand for the metal is already increasing - and is expected to continue growing.

If the merger were to go ahead, the combined company would generate about 10% of global copper supply, amounting to more than 2 million tonnes.

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Anglo has said it is currently reviewing the "unsolicited, non-binding and highly conditional combination proposal".

"There can be no certainty that any offer will be made nor as to the terms on which any such offer might be made," said the group.

Under UK takeover rules, BHP has until May 22 to make a concrete proposal.

A deal between the firms would be the second major acquisition by BHP in about a year after its purchase of copper miner Oz Minerals in 2023.

Experts believe that such a move could be a catalyst for more mergers in the sector as groups try to alter their portfolios and cash in on the net-zero transition.

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Copper prices on the London Metal Exchange have surged by 15% this year, approaching $10,000 a tonne (€9,355).

As of around 15h45 on Thursday, Anglo shares were up 13.63% in daily trading.