The proposed takeover of Anglo American by larger rival BHP, if consummated, may result in a capital outflow of about R80bn from SA, number crunchers at JPMorgan said, a move that might give the Reserve Bank a fresh headache as it has the potential to weaken the rand.

If Anglo agrees, the proposed $49bn tie-up could lead to the spin-off of Anglo’s iron ore and platinum assets to shareholders. The distribution, according to JPMorgan’s note to clients dated May 23, is expected to prompt developed-market investor index funds to sell the unbundled stocks, potentially leading to a significant outflow of funds. ..

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.