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...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.