After three earlier proposals were rejected, 29 May was the final deadline for an agreement. Media reports suggest that after a frantic day of negotiations, neither party was able to reach a satisfactory conclusion.
BHP Group has suggested that despite multiple requests, access to ‘key information’ wasn't allowed during negotiations. Anglo American stated that it believes the proposed deal wouldn’t pass regulatory procedures in South Africa.
“After rejecting BHP the third time, Anglo announced its own plans to break up its business by selling or spinning off major parts of the firm including its De Beers diamond operation and its platinum division, with a view to focusing on key areas such as copper, premium iron ore and crop nutrients,” explains a report from the BBC.
“BHP had made a series of proposals it said it would keep for at least three years to ease Anglo’s concerns.
“They included maintaining current staff levels at Anglo’s Johannesburg office, keeping BHP listed on the Johannesburg Stock Exchange, and sharing the cost of increased South African employee ownership ‘if required to secure regulatory approvals’.”
The report continues: “However, Anglo said that BHP’s offer still included ‘the same highly complex and unattractive structure as the proposals previously rejected on 26 April 2024 and 13 May 2024’.”
De Beers is still expected to be sold, and other mining companies, Gulf sovereign wealth funds, and luxury companies have also been identified as possible suitors.
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