FTSE 100 miner Anglo American has rejected rival BHP’s request for more time to make another takeover bid.
BHP, which has so far seen three bids rejected, the most recent of which valued it at £39 billion, this morning requested an extension of its “put up or close” deadline beyond its current countdown to 5 this afternoon.
The Australian firm unveiled a series of measures that it said addressed concerns about complexity and potential regulatory barriers hindering a deal.
But Anglo said in a statement that BHP “has not addressed” its “fundamental concerns” related to the “disproportionate execution risk” associated with the structure of the proposed deal and the value delivered to shareholders.
Denied: Anglo American rejects BHP’s calls for an extension to postpone or close the deadline, which could end the biggest mining deal in history.
BHP’s proposals, which would mark the biggest mining industry deal in history if completed, include a requirement for Anglo to spin off and sell its publicly traded South African platinum and iron ore divisions.
Anglo has said such a move would be unprecedented and would likely face regulatory opposition in South Africa and elsewhere.
BHP said it could pay an “appropriate reverse breakup fee” if it fails to obtain the required antitrust and regulatory approvals in South Africa.
It added that these measures would “provide substantial risk protection for Anglo American shareholders and complement the significant increase in value that Anglo American shareholders will receive from the potential combination.”
In response, Anglo said this approach “does not sufficiently address” its concerns about “disproportionate execution and value risks and uncertainty over a prolonged period.”
Anglo has revealed a separate plan to divest or spin off a significant part of its operations, which it says is in stark contrast to BHP’s offer.
Anglo added: “Taking into account detailed feedback from the board’s extensive engagement with Anglo American shareholders and stakeholders, the board unanimously concluded that there is no basis for a further extension of the PUSU deadline.”
Anglo-American stocks They were down 2.5 percent at 2,494 pence by late afternoon on Wednesday, capping 2024 gains at about 27 percent.