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BHP's Pursuit of Takeover of Anglo American Falls Through, Jefferies Downgrades Anglo American

2024-05-30 02:57:01.014000

BHP Group Ltd., the world's largest mining company, has failed in its attempt to acquire Anglo American Plc after its $49.20 billion bid was rejected by Anglo American [f158437f]. BHP had requested a deadline extension to further explore the potential takeover, but Anglo American declined the request [cf7c2940]. The key point of contention in the deal was BHP's demand that Anglo offload its South African platinum and iron ore businesses [cf7c2940].

Following the failed takeover attempt, Jefferies downgraded Anglo American PLC [cf7c2940]. Jefferies analysts stated that Anglo must now execute its own proposed restructuring, which includes a demerger of the South African business, a sale or spin-off of its De Beers diamond unit, a sale of its metallurgical coal business, and a review of its nickel business [cf7c2940]. The brokerage firm forecasts that the restructuring process will likely take at least 18 months and highlights the risks associated with it [cf7c2940]. However, Jefferies still expects a considerably higher share price from Anglo American in the long term [cf7c2940].

BHP's interest in the takeover was driven by its desire to secure a reliable copper supply, which is crucial for clean-energy industries [393baae7]. The potential deal between BHP and Anglo American had significant implications for commodities markets and the global energy transition [393baae7].

The outcome of BHP's bid for Anglo American remains uncertain, and the mining industry is closely watching the developments [393baae7] [2de41377]. Investors are advised to monitor the situation as it continues to evolve [393baae7] [2de41377].

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