Anglo American, the parent company of the world’s largest diamond producer, De Beers, confirmed it received an ‘unsolicited’ proposal for a takeover from Australia’s BHP Group Limited in April 2024.
Three proposals were tendered over the following months; however, each was rejected. Addressing the negotiations in October, Anglo American CEO Duncan Wanbald said that ‘the plan was to get it done’ during a summit in London.
The six-month cooling-off period imposed by UK regulators has expired, and The Times reports that a new takeover attempt is expected soon.
“BHP’s original bid ruffled feathers in South Africa, where Anglo [American] was historically based and where it is a big employer. The timing, just before a general election, was also considered unhelpful,” writes Jon Yeomans.
“In October, BHP chief executive Mike Henry paid a visit to investors in South Africa, which was seen by many as an attempt to mend fences. Company insiders acknowledged that it had somewhat neglected its presence in South Africa; after all, the modern-day BHP was born out of a merger between BHP of Australia and Billiton of South Africa in 2001.”
While BHP remains a leading candidate for acquiring De Beers, the report also suggested that other suitors may emerge.
“Not everyone is convinced that BHP will return for Anglo. The question marks over the chair and chief executive’s tenures might cloud the chances of doing another deal – and BHP wouldn’t want to risk being turned down again, City sources said,” the report continues.
“Many wonder whether a rival player such as Glencore might be minded to swoop.”
Media reports in the second half of the past year indicated that a sale of De Beers was expected to be completed before the end of 2025.
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