Speculation is rising that BHP, the Australian mining giant, could attempt another acquisition of rival miner Anglo American, the owner of De Beers. According to a report by the Financial Times, this is “an open secret” as BHP considers a new offer after its previous $49 billion bid was rejected in May.
Since that rejection, Anglo American’s share price has dropped nearly 25%. The company has also faced challenges, including a significant fire at its Grosvenor coking coal mine. In July, Anglo reported a net loss of $672 million for the first half of the year, a sharp decline from a net profit of $1.26 billion during the same period last year.
BHP’s CEO, Mike Henry, reportedly met with South African government officials last week to discuss the potential acquisition. Meanwhile, Anglo American announced plans to divest or spin off its diamond (De Beers), platinum, coking coal, and nickel assets. The company aims to concentrate on copper and other more profitable commodities.
In the UK, takeover regulations mandate a six-month waiting period before BHP can submit another bid for Anglo American. This rule, which extends until November, is designed to provide stability and minimize ongoing pressure on targeted companies.
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