BHP will have to sweeten its Anglo offer, but could it overpay?
Group’s share price jumps on news of the bid as board unanimously rejects merger proposal
29 April 2024 - 05:00
Australia’s BHP will have to sweeten its offer if it wants to merge with Anglo American, after Anglo’s share price jumped sharply on news of the bid — raising the question of how high BHP would go to clinch a deal and whether it risks overpaying.
And while the “Big Australian”, whose proposed mega-merger would create the world’s largest copper producer, could simply decline to submit a formal offer by the May 22 deadline, analysts say it could look frivolous in the eyes of investors if it did. It could also face competing bids from rivals such as Rio Tinto or Glencore now that Anglo is in play...
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