BHP “to Increase Offer for Anglo American”

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BHP

BHP is likely to increase its all-share offer for Anglo American after the UK miner rejected its $39bn bid last week.

A successful bid would almost certainly mean the sale of De Beers, which doesn’t fit with BHP’s business model.

Australia-based BHP, the world’s biggest miner, is widely reported to be considering an improved offer after Anglo described its opening offer as “highly unattractive”.

Anglo’s rejection of the BHP offer – albeit based on price rather than principle – could now open the way for Glencore, Rio Tinto and other mining corporations to put in rival bids.

Anglo is reported to have been talking to possible buyers for De Beers before the BHP bid.

According to report in the Wall Street Journal, it has spoken in recent weeks to luxury houses and Gulf sovereign-wealth funds.

A partnership between could emerge as the final buyer for its diamond business, according to unnamed sources.

Meanwhile Gwede Mantashe, South Africa’s minister of mineral resources and energy, told the Financial Times that his country’s previous experience with BHP was “not positive”.

Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.