BHP Walks Away from Anglo Takeover Bid
May 30, 24
(IDEX Online ) - The Australian mining giant BHP has, as expected, walked away from its $49bn takeover bid for Anglo American.
The sale of De Beers, Anglo's loss-making diamond division, is expected to go ahead regardless.
After a day of frantic activity yesterday (Wednesday 29 May) Anglo rejected BHP's plea for a further extension beyond the 16.00 GMT deadline to thrash out a deal.
BHP said Anglo hadn't allowed it access to "key information" during the negotiations "despite numerous requests".
Anglo said that despite extensive talks it still believed there was a significant risk that the deal wouldn't clear regulatory procedures in South Africa.
Anglo confirmed earlier month that it was seeking a buyer De Beers, the diamond company it has controlled for almost a century.
It will also ditch its platinum operations (as well as nickel and steelmaking coal) to focus on copper and other more profitable parts of its business.
De Beers saw sales slump last year - down 36 per cent to $3.63bn, per carat prices down 25 per cent to $147 - and it made a loss in the second half of 2023. Sales slump in 2023 - down 36 per cent to $3.63bn, with per carat prices down 25 per cent to $147.
It has cut its production guidance for this year by 10 per cent and expects output to be down by around 3m carats from its original forecast of 29m - 32m carats to 26m - 29m carats.
Pic shows the De Beers Orapa mine, in Botswana.