An electrified world has become increasingly dependent on battery metals, particularly on copper, and BHP is, not surprisingly, eager to secure a leading position in the market. A tie-up would give the mining giant about 10% of the global copper production.
It would also boost its presence in the world’s top copper producing countries Chile and Peru, as with the acquisition of Anglo American, BHP would gain access to three of the world’s largest copper mines — Collahuasi (with ownership of 44%), Los Bronces (50.1%), El Soldado (50.1%) and Quellaveco (60%). This would improve the company’s exposure to copper by about 40%.
BHP’s proposal is valued at £25.08 per Anglo share, a 14% premium to the target company’s closing price on Wednesday. According to analysts, the offer is not as sweet as it seems and they believe Anglo American is well-positioned to push for a better deal.
Given its conglomerate nature, finding a…
