BHP Group has denied media reports it plans a new takeover bid for Anglo American.
The world’s largest mining company said it had held preliminary discussions with the Anglo American Board but was no longer considering a combination of the two companies.
“Whilst BHP continues to believe that a combination with Anglo American would have had strong strategic merits and created significant value for all stakeholders, BHP is confident in the highly compelling potential of its own organic growth strategy,” BHP said in a media release.
Earlier, media outlets including Reuters and Bloomberg reported BHP was preparing to launch a new takeover offer only a year after abandoning a $49 billion bid and months after Anglo agreed to merge with Canada's Teck Resources (TECKb.TO).
The Teck deal, worth more than US$60 billion, would create the world’s second-largest copper producer with annual output of 1.2 million tonnes.
BHP had made overtures to the one-third smaller London-listed Anglo American in the last few days, Bloomberg reported in this story.
Bloomberg quoted people familiar with the situation as saying BHP’s proposal included a mix of cash and stock.
“The deliberations remain ongoing, and there is no guarantee they will result in a transaction, the people said,” Bloomberg wrote.
The combined entity would be the world's largest copper producer with an annual production of 1.9 million tonnes.
Demand for copper is expected to soar because the base metal is at the heart of the transition to renewable energy from fossil fuel-based sources.
The original BHP bid required Anglo to spin off two South African businesses before any merger could proceed, and was withdrawn after a five-week standoff and repeated rejections from Anglo.
Anglo American shares (LON: AAL) closed 33.01 pence (1.21%) lower at 2,702.99 British pounds on Friday, capitalising the company at 31.84 billion ($US41.7 billion) pounds.
BHP shares (ASX: BHP) ended A$1.35 (3.24%) down at $40.37 on Friday, valuing the company at $205.04 billion (US$132.34 billion).
