BHP Group (ASX:BHP,NYSE:BHP,LSE:BHP,OTCQB:BHPLF) confirmed in a statement on Monday (November 24) that its discussions on a merger with Anglo American (LSE:AAL,OTCQX:NGLOY) have officially ended.
The discussions trace back to April 2024, when BHP made its first offer to Anglo to combine their copper assets.
Copper, in particular, has become a prime target as producers seek scale and efficiency in the face of tightening supply and the costly hunt for new deposits.
BHP’s six-week pursuit yielded a total of three offers, including a rejection letter from Anglo in May.
At the time, Anglo said that the deal did not meet its expectations.
In 2025, BHP was triggered to make another bid for Anglo following Anglo’s announcement of a merger with Teck Resources (TSX:TECK.A,TECK.B,NYSE:TECK,OTCQX:TCKRF).
The move was to hinder the supposed new entity, which is projected to become the second-largest listed copper-focused producer, after BHP.
In its statement, BHP said that it is now abandoning its bid for Anglo.
“Whilst BHP continues to believe that a combination with Anglo American would have had strong strategic merits and created significant value for all stakeholders, BHP is confident in the highly compelling potential of its own organic growth strategy,” the mining giant said in its statement.
According to media reports BHP saw Anglo as a means of keeping its dominance in copper.
“While it remains the world’s top producer, its lead is narrowing in the years ahead without significant new projects,” Reuters noted.
Additionally, Berenberg analysts, noted that the Anglo-Teck merger is now more likely to happen after BHP conceded.
“A BHP bid for Anglo would have frustrated that deal, but with BHP now stepping away, it appears that the interloper risk for Anglo has materially reduced and the Anglo/Teck Resources deal is likely to go ahead, assuming approvals are received,’ analysts wrote.
The Anglo-Teck merger is still awaiting approval under the Investment Canada Act.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
