“UK-based mining giant Anglo American approached by BHP for potential £31bn takeover”

UK-based mining giant Anglo American is currently considering a £31bn takeover proposal from rival BHP, in what could be one of the largest mergers in the mining industry in recent years.

Anglo American, which operates mines in countries like Chile, South Africa, Brazil, and Australia, has confirmed that the proposal is under review by its board of directors. BHP, the world’s largest publicly listed mining company with a market valuation of about A$229bn (£119.5bn), sees the potential takeover as an opportunity to gain access to Anglo American’s “world class copper assets.”

If the deal goes through, it would significantly increase BHP’s presence in the copper industry, particularly in South America where Anglo American has operations. The price of copper has been on the rise, with a more than 15% increase in global markets this year, driven by high demand as the shift to clean energy accelerates.

Tim Waterer, chief market analyst at financial services firm KCM Trade, noted that Anglo American’s existing footprint in the copper industry likely attracted BHP to make the proposal. Additionally, Anglo American’s share price had fallen by almost 10% in the last year, potentially making it a more appealing takeover target.

The news of the potential merger has already had an impact on the stock market, with Anglo American’s share price jumping by more than 12% in early trading. However, BHP’s proposal includes a condition that Anglo American would need to give up its stakes in platinum and iron ore operations in South Africa.

Under the UK’s merger and acquisition rules, BHP has until May 22 to make a formal offer for Anglo American. The potential deal has raised concerns in the City of London, with some speculating that if it goes through, more giants could follow suit and leave the exchange.