Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed on Friday trading for $40.37. In morning trade on Monday, shares are swapping hands for $40.61 apiece, up 0.6%.

For some context, the ASX 200 is up 1.1% at this same time.

There are a lot of moving parts potentially impacting the BHP share price today.

So, let's dig in.

BHP share price up on axed Anglo American takeover

After making no less than three bids in its $74 billion takeover offer for global miner Anglo American (LSE: AAL) in 2024, BHP eventually walked away from the table.

But the Aussie mining giant didn't lose interest in acquiring Anglo American and recently resumed acquisition discussions that were reported in the media late last week.

Today, however, the BHP share price could be impacted after the miner announced that following preliminary discussions with the Anglo American board, it is no longer considering a merger of the two companies.

The ASX 200 miner stated:

Whilst BHP continues to believe that a combination with Anglo American would have had strong strategic merits and created significant value for all stakeholders, BHP is confident in the highly compelling potential of its own organic growth strategy.

This means that BHP will not be making any further bids for Anglo American in the medium term, with a few possible exceptions.

Those include a third party announcing a firm intention to make an offer for Anglo American. Or if Anglo American's board agrees to today's statement aside.

What else is happening with the ASX 200 miner?

The BHP share price is in the green today despite media reports that China isn't done with its efforts to take greater control of iron ore pricing in its arrangements with BHP.

The government has reportedly told Chinese commodity traders and steel mills to no longer buy low-grade iron ore referred to as 'Jingbao fines'. The share price impact on the ASX 200 miner today appears to be limited, as this only represents a small percentage of BHP's iron ore exports to China.

China is said to be making the move to reduce the global influence of the US dollar on its trading practices.

According to Carolin Kautz, a China analyst at SinoVise (quoted by The Australian Financial Review):

They have been pushing for companies to settle in [yuan], and now they have more leverage to do this. They want to reduce their reliance on American dollars…

This is not about turning the yuan into a reserve currency. Beijing is offering settlement in its own currency to reduce dollar dependence, especially for partners in the Global South. The structural barriers like capital controls haven't gone away.

What else is impacting the BHP share price?

The ASX 200 miner should be enjoying some modest tailwinds from the 0.3% boost in the iron ore price over the weekend. The industrial metal is trading for US$104.245 per tonne.

Copper, BHP's number two revenue earner and growing, is also up 0.4% to US$10,777.50 per tonne.

The post Why is the BHP share price lifting today? appeared first on The Motley Fool Australia.

Back in April, investors were greeted with the news that BHP had lobbed a takeover offer to Anglo American. This potential merger grabbed investors' attention. After all, it would have seen the $216 billion BHP swallow up the $63.5 billion Anglo American. That's a merger that would have had few rivals in modern history in terms of size and scale.

It wasn't to be. Anglo rejected three increasingly expensive offers for a full acquisition from BHP. The final $74 billion offer got its marching orders back in late May.

Many investors assumed that was the end of this failed courtship. But a new statement from BHP out today might indicate otherwise.

BHP held its annual general meeting for 2024 yesterday. According to reporting from Reuters, BHP chair Ken MacKenzie appeared to pour cold water on the idea that BHP could revisit a merger with Anglo. He was quoted as stating this:

We made an approach to Anglo American earlier this year … we thought there was an opportunity here to create something unique and special, a bit of a sort of a one plus one equals three opportunity…

Unfortunately, Anglo American shareholders had a different view, and they thought there was more value in the plan that their management wanted to execute. And so they moved on. And quite frankly, so have we.

So end of story, right?

Well, not so fast.

The 'Big Australian' keeps a foot in Anglo American's door

Firstly, it's worth noting that BHP is currently subject to British takeover restrictions. These restrictions dictate a six-month regulatory freeze on making any new approaches to Anglo American after its failed bids.

With that in mind, let's discuss the statement that BHP put out this morning in response to its chair's comments yesterday.

In this ASX statement, BHP told investors the following:

BHP… notes the press reports of comments made by BHP in response to questions at its Annual General Meeting on 30 October 2024 regarding Anglo American… BHP clarifies that these comments were not intended to be a statement to which Rule 2.8 of the UK City Code on Takeovers and Mergers (UK Code) applies, nor intended to carry any other consequences under the UK Code.

The UK Takeover Panel Executive has confirmed that the comments made will not be treated as a statement of intention not to make an offer in respect of Anglo American for the purposes of Rule 2.8 of the UK Code. BHP remains bound by the Rule 2.8 restrictions set out in its announcement dated 29 May 2024, which apply for six months from the date of that announcement, subject to the reservations set out in that announcement.

That's rather wordy, but the key takeaway phrase here is arguably, "the comments made will not be treated as a statement of intention not to make an offer in respect of Anglo American".

So, it seems that owners of BHP shares could still see Anglo American join the fold, even if it seems unlikely (judging by the chair's comments yesterday). Let's see what happens when that six-month freeze expires next month.

BHP share price snapshot

BHP shares have had a rough 2024; there's no way around it. The mining giant remains down by around 15.6% year to date and 4.1% over the past 12 months.

At the current (at the time of writing) BHP share price of $42.68, this ASX 200 blue chip is trading on a dividend yield of 5.17%.

The post 'Not ruled out': Could BHP still buy Anglo-American? appeared first on The Motley Fool Australia.

In morning trade, the mining giant's shares are down 1.5% to $41.31.

Why is the BHP share price falling?

Investors have been selling BHP and other mining stocks on Tuesday following a pullback in commodity prices.

This has offset some big news out of the miner this morning.

After being snubbed by Anglo American plc (LSE: AAL), the Big Australian has found another way to gain additional exposure to copper.

According to the release, BHP and Lundin Mining have agreed to jointly acquire 100% of Filo Corp for C$4.1 billion (A$4.5 billion) through a Canadian plan of arrangement.

Filo Corp owns 100% of the Filo del Sol (FDS) copper project, which is located in the Vicuna district of Argentina and Chile. The large-scale, high-grade sulphide deposit at the FDS project is considered to be one of the most significant copper discoveries globally in recent decades.

BHP's total cash payment for the proposed transaction is expected to be approximately US$2.1 billion.

In addition, BHP plans to acquire 50% of the Josemaria copper project from Lundin Mining for cash consideration of approximately US$690 million.

Joint venture

The two parties have also agreed to form a 50:50 joint venture. This will see each party contribute their respective 50% interests in Filo Corp and the Josemaria project into the joint venture.

Management notes that the joint venture will create a long-term partnership between BHP and Lundin Mining to jointly develop an emerging copper district with world-class potential.

Commenting on the acquisition, BHP's CEO, Mike Henry, said:

The proposed transaction builds on a multi-year relationship between BHP and the Lundin Group of companies through which we have developed a strong understanding of the resource potential of the Vicuña district and the possible pathways for development of the Filo del Sol and Josemaria projects.

This transaction aligns with BHP's strategy to acquire attractive early-stage copper projects and enter into strategic partnerships with parties where complementary skills and experience can deliver long-term economic and social value. The joint venture with Lundin Mining will advance the development of the Vicuña district, which offers the potential to become a major contributor to the economy of Argentina for decades to come. At the same time, by partnering with Lundin Mining, BHP is continuing to invest in the growth of a robust mining sector in Canada.

The post BHP share price drops despite $4.5b copper acquisition appeared first on The Motley Fool Australia.

While the coal miners are putting in a mixed performance today, they've broadly been a tear over the past year.

What kind of a tear?

Well, over the past 12 months, the ASX 200 has gained 11.3%.

Here's how these ASX 200 coal stocks have performed over this same period (excluding some very juicy dividend payouts):

• New Hope Corp Ltd (ASX: NHC) shares are up 5.4%
• Whitehaven Coal Ltd (ASX: WHC) shares are up 35.5%
• Stanmore Resources Ltd (ASX: SMR) shares are up 59.3%
• Yancoal Australia Ltd (ASX: YAL)* shares are up 54.9%

(*Note: Yancoal is not an ASX 200 coal stock just yet. But with its market cap now at $9.7 billion, compared to $3.5 billion for Stanmore, I expect it will join the benchmark index in an upcoming quarterly rebalance.)

More turbines, less wind power

Despite the construction of more windmills, the June quarter saw a big decline in wind-driven electricity delivered to the Aussie market.

According to UNSW senior research associate Dylan McConnell (courtesy of The Australian Financial Review), wind power generation across the National Electricity Market (NEM) plunged 19.8% over the quarter just past.

But in good news for ASX 200 coal stocks, if not for Australia's net zero ambitions, coal power went the other way, up 6.5%.

Commenting on the uptick in coal-fired electricity, Global Power Energy's Geoff Eldridge said:

Coal and gas outputs have generally increased, reflecting a continued reliance on traditional energy sources to maintain grid reliability. Meanwhile, renewable energy sources such as utility wind and utility solar have faced declines due to seasonal challenges.

Independent consultant Matthew Rennie added, "Renewables are neither being built as quickly as we need them to be nor is transmission being constructed as quickly as required."

What are the experts saying about ASX 200 coal stocks?

With renewable sources lagging in the race to provide reliable baseload power in Australia and much of the developing world continuing to roll out new coal-fired power plants, the demand picture for thermal coal remains solid over the medium term.

ASX 200 coal stocks are also likely to see strong ongoing demand for the higher-quality coking or metallurgical coal they dig from the ground.

In fact, Morgan Stanley lists metallurgical coal as its top commodity pick. According to the AFR, the broker forecasts coking coal prices will hit US$290 per tonne by the end of 2024, up 15% from current levels.

That bullish forecast is based on an expected rebound in demand from India, the world's most populous nation. However, supply disruptions have also occurred, as several major coal mines — including Anglo American's (LSE: AAL) Grosvenor metallurgical coal mine in Queensland — have been shuttered following underground fires.

Morgan Stanley has an overweight rating on Yancoal and Whitehaven shares.

Glenmore Asset Management portfolio manager Robert Gregory is also bullish on the outlook for ASX 200 coal stocks and some of the smaller miners.

According to Gregory:

The really attractive part about all these coal stocks is that even at a reasonably low point in the price cycle, they're still generating very material profits and paying dividends.

So the set-up is really positive in that when we get a recovery in coal prices, which I think is inevitable at some stage, then they're poised to produce some very good earnings and hopefully get a re-rating as well.

The post ASX 200 coal stocks in focus as wind power fades to a breeze appeared first on The Motley Fool Australia.

Which companies are leading the benchmark higher in these early days of the new financial year?

Read on!

ASX 200 stocks at the top of the FY 2025 leaderboard

The third-best ASX 200 stock in the budding new financial year is Lynas Rare Earths Ltd (ASX: LYC).

Shares in the rare earths miner closed last Friday, the final trading day of FY 2024, at $5.93 apiece. In afternoon trade today, shares are swapping hands for $6.57.

That sees the Lynas share price up 10.8% over the week.

This strong performance is likely linked to the company's 27 June announcement that its Lynas Malaysia business is aiming for first production of two separated heavy rare earths products in 2025.

The plant will produce separated dysprosium (Dy) and terbium (Tb), both critical elements in the high-performance rare earth permanent magnets found in numerous high-tech devices and EVs.

Moving on to the second-best ASX 200 stock performer in these early days of FY 2025, we have Magellan Financial Group Ltd (ASX: MFG).

Shares in the fund manager closed out FY 2024 trading for $8.42. At the time of writing, shares are changing hands for $9.39 apiece. That puts the Magellan share price up 11.5% over the week.

The Magellan share price closed in the green every day this week, and it looks set to do so again today.

The biggest boost for the ASX 200 stock came yesterday when the company updated the market on its funds under management. After experiencing net money outflows of $100 million in May, flows into and out of its funds were flat in June. Magellan is also set to pay out some $200 million in dividends in July.

Which brings as to the top-performing ASX 200 stock in this first week of the 2025 financial year, Whitehaven Coal Ltd (ASX: WHC).

Shares in the coal miner closed on 28 June trading for $7.65. At the time of writing, shares are trading for $8.96 apiece.

This sees the Whitehaven share price up a whopping 17.1% over the first week of FY 2025.

Whitehaven received some unexpected tailwinds this week alongside other ASX coal miners after Anglo American (LSE: AAL) was forced to suspend production at its Grosvenor coal mine in Queensland following an underground fire.

With an eye towards safety and significant fire damage likely within the mine, Anglo American said it expects coal production at the project to remain suspended for at least several months.

The post 3 high-flying ASX 200 stocks leading the charge into FY 2025 appeared first on The Motley Fool Australia.

How hot?

Well, at the time of writing, the ASX 200 is down 0.46%.

But don't blame the big Aussie coal shares for that retrace.

Here's how these three leading coal stocks are performing at this same time as we head into the Monday lunch hour:

• Whitehaven Coal Ltd (ASX: WHC) shares are up 6.8%
• New Hope Corp Ltd (ASX: NHC) shares are up 3.8%
• Coronado Global Resources Inc (ASX: CRN) up 10.1%

Now, none of these companies have released any price-sensitive information.

So, what's spurring investor interest?

ASX 200 coal shares lift on Anglo's woes

Investors look to be snapping up ASX 200 coal shares today after Anglo American (LSE: AAL) reported that it has suspended production at its Grosvenor metallurgical coal mine in Queensland.

Metallurgical, or coking coal, is primarily used for steel making, as opposed to thermal coal, which is mostly used to generate electricity.

The global miner, the subject of a recently rejected takeover offer from BHP Group Ltd (ASX: BHP), said it is halting work after an underground coal gas ignition hit the mine on Saturday.

Anglo American's workers were all safely evacuated from the mine without injury.

Its mine team is now working with specialist teams from the Queensland Mines Rescue Service and the regulatory authorities to extinguish the underground fire.

Once that's out, management will assess the steps towards a safe re-entry into the mine. Due to the likely damage underground, it is expected these procedures will take several months.

But some industry insiders fear that may be optimistic. Fears which look to be benefiting ASX 200 coal shares today.

As ABC News reports, Mining and Energy Union industry safety and health representative Jason Hill said workers were being sent home indefinitely, with some fearing the Grosvenor coal mine might never reopen. The mine has previously recorded high gas levels during routine monitoring.

What's at stake?

As for what's at stake for the ASX 200 coal shares, Anglo American's steelmaking coal business is forecast to produce around 8 million tonnes of product in the first half of 2024. The Grosvenor mine is expected to contribute some 2.3 million tonnes of that total.

Looking at the full 2024 calendar year, Anglo's production guidance for its steelmaking coal business is 15 to 17 million tonnes, of which Grosvenor was expected to contribute around 3.5 million tonnes. That Grosvenor guidance already represented lower production in the second half of 2024 due to a planned longwall move.

Still, the Grosvenor fire means that 1.2 million tonnes of Aussie coal now might not hit the markets in the second half of the year. And the outlook for 2025 remains uncertain.

Anglo American said it would update the market on its steelmaking coal production guidance once more information is available.

As for today, investors appear confident that the ASX 200 coal shares could benefit from the Anglo's production hit.

The post Why are ASX 200 coal shares smashing the market today? appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant finished off April trading for $43.03. When the closing bell rang on Friday 31 May, shares were changing hands for $44.51 apiece.

That saw the BHP share price up 3.4% in May, racing ahead of the 0.5% monthly gain posted by the ASX 200.

Here's what happened in the month just gone.

What moved the BHP share price in May?

Setting aside the elephant in the room for the moment, the BHP share price received some support in May from a fairly resilient iron ore market, with the steel-making metal trading in the US$116 to US$118 per tonne range for most of the month.

And copper, BHP's second biggest revenue earner after iron ore, continued to outshine in May. After hitting all-time highs on 20 May, the copper price ended the month up 3% at US$10,040 per tonne.

The demand outlook for both industrial metals received a boost mid-month as the Chinese government announced fresh moves to stimulate the nation's sluggish economy and struggling, steel-hungry property markets. Those included the sale of 1 trillion yuan of bonds intended to increase infrastructure spending.

Which brings us back to the elephant in the room, BHP's three failed bids to acquire global miner Anglo American (LSE: AAL).

Investors shrug off takeover rejection

The BHP share price alternately moved higher or lower amid fresh news over the month on the ASX 200 miner's takeover efforts of Anglo American.

BHP's acquisition of some of Anglo's prized assets, most notably its copper mines, would likely have lifted its fortunes over the medium to longer-term. But over the shorter-term many investors were concerned over the hefty price tag, along with BHP's plans to divest a number of Anglo's South African platinum and iron assets.

As it turns out, those concerns were unwarranted, and BHP's efforts eventually came to naught.

As you're likely aware, BHP made its first bid for Anglo American on 26 April. That was swiftly rejected by Anglo's board.

In May, BHP twice sweetened its offer, which reached approximately $74 billion on the third bid.

But those too were rejected by Anglo's board, which remained concerned over the complicated structure of the deal and maintained the offer undervalued Anglo American's long-term growth prospects.

On 30 May, following Anglo's rejection of that third bid, BHP CEO Mike Henry closed the door on any further negotiations. At least for now.

"BHP will not be making a firm offer for Anglo American," he said.

As for June, the BHP share price is starting the new month off with a bang, up 1.3% at $45.08 a share.

The post The BHP share price crushed the benchmark in May. Here's how appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed yesterday trading for $45.08. In morning trade on Thursday, shares are changing hands for $44.50 apiece, down 1.3%.

For some context, the ASX 200 is down 0.8% at this same time.

The BHP share price is slipping as ASX investors digest the news that BHP's $74 billion takeover offer for global miner Anglo American (LSE: AAL) will not proceed.

At least, not anytime soon.

BHP share price slides on rejected takeover extension

As the Motley Fool reported last night, BHP's three consecutively better bids for Anglo American (the first lobbed on 26 April) were not enough to convince the miner's board that the offer presented better value for shareholders than they could deliver themselves.

A decision that looks to be pressuring the BHP share price today.

Last night, with just hours to go before the takeover deadline stipulated under British regulations was reached, BHP CEO Mike Henry still sounded confident that a deal, which would have seen BHP become the world's biggest copper miner, might yet be reached.

Having received a one-week extension to the takeover deadline last week following its third acquisition bid, BHP requested another extension on the discussions yesterday.

The miner stated:

BHP believes that the proposed measures it has put forward provide substantial risk protection for Anglo American shareholders and supplement the significant value uplift that Anglo American shareholders will receive from the potential combination. BHP believes a further extension of the deadline is required to allow for further engagement on its proposal.

Anglo's board was having none of it, however. Anglo replied:

In aggregate, BHP has not addressed the board's fundamental concerns relating to the disproportionate execution risk associated with the proposed structure and the value that would ultimately be delivered to Anglo American's shareholders.

The board unanimously decided not to extend the deadline, which came at 5pm London time.

Mike Henry responds

Commenting on the end of the takeover negotiations that's seeing the BHP share price underperforming today, CEO Mike Henry said in no uncertain terms, "BHP will not be making a firm offer for Anglo American."

Henry continued:

BHP is committed to its capital allocation framework and maintains a disciplined approach to mergers and acquisitions.

While we believed that our proposal for Anglo American was a compelling opportunity to effectively grow the pie of value for both sets of shareholders, we were unable to reach agreement with Anglo American on our specific views in respect of South African regulatory risk and cost and, despite seeking to engage constructively and numerous requests, we were not able to access from Anglo American key information required to formulate measures to address the excess risk they perceive.

We remain of the view that our proposal was the most effective structure to deliver value for Anglo American shareholders, and we are confident that, working together with Anglo American, we could have obtained all required regulatory approvals, including in South Africa.

Now what?

Anglo American appears determined to go its own way. Though it's always possible other suitors could come knocking.

Under British regulations, BHP cannot make another offer for at least six months, unless a competing offer comes in from another company.

With today's intraday losses factored in, the BHP share price remains up 3% over 12 months.

The post BHP share price tumbles as $74 billion deal evaporates appeared first on The Motley Fool Australia.

That's because the mining giant has just released an update on its proposed takeover of copper giant Anglo American plc (LSE: AAL).

What's the latest?

BHP notes that on 22 May the Board of Anglo American granted an extension to the deadline for BHP to make a takeover offer.

The Big Australian welcomed the extension as it provided it with the opportunity to engage with Anglo American about its concerns regarding BHP's proposal. That proposal would see BHP acquire the miner for approximately $75 billion.

According to the release, since the extension to the deadline was granted, BHP has continued to work extensively to address those matters. This has included several engagements with Anglo American and its advisers.

BHP is 'confident'

This afternoon, BHP has released an update on its discussions with the Anglo American team and revealed that it is confident it can resolve matters. It said:

BHP is confident that the measures it has proposed to the Board of Anglo American provide a viable pathway to resolve the matters raised by Anglo American and would support South African regulatory approvals. BHP has considered market precedent transactions and believes that the risks are quantifiable and manageable. BHP has already factored the costs associated with these risks into the offer ratio of its proposal.

In addition, BHP has advised that it would be willing to discuss an appropriate reverse break fee. This would be payable by BHP on failure to achieve the necessary anti-trust and regulatory approvals, including in South Africa.

Deadline extension requested

BHP has requested that Anglo American extend the deadline again. It said:

BHP believes that the proposed measures it has put forward provide substantial risk protection for Anglo American shareholders and supplement the significant value uplift that Anglo American shareholders will receive from the potential combination. BHP believes a further extension of the Deadline is required to allow for further engagement on its proposal.

Extension request rejected

Unfortunately for BHP, it has not done enough to sway the Anglo American board and its request for an extension has been rejected. Anglo American told the London Stock Exchange:

In aggregate, BHP has not addressed the Board's fundamental concerns relating to the disproportionate execution risk associated with the proposed structure and the value that would ultimately be delivered to Anglo American's shareholders. Also taking into consideration detailed feedback from the Board's extensive engagement with Anglo American's shareholders and stakeholders, the Board has therefore unanimously concluded that there is no basis for a further extension to the PUSU deadline.

Editors note: article updated at 7:25pm

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Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed flat yesterday trading for $45.08. In morning trade on Wednesday, shares are swapping hands for $45.13 apiece, up 0.1%.

For some context, the ASX 200 is down 0.8% at this same time.

BHP shares will be catching some headwinds from the 1.2% decline in iron ore prices overnight. The steel making metal dipped to US$117.90 per tonne amid resurgent concerns over Chinese demand.

But foremost on investors' minds today is tonight's deadline for the ASX 200 miner's $74 billion takeover proposal of Anglo American (LSE: AAL).

Following a one-week extension on the heels of the miner's third offer, BHP now has until 5pm London time today (overnight Aussie time) to commit to a deal or potentially request another extension.

Here's what's happening with BHP shares.

Will the third bid be a winner?

Investor focus homed in on BHP shares on 26 April when the miner made its first takeover bid for Anglo American.

BHP is primarily interested in Anglo's high-quality copper assets and, likely, its Queensland-based coal mines as well.

Copper prices hit record highs last week, having surged 29% over the past 12 months. The red metal is currently trading for US$10,502 per tonne, up from US$8,123 a year ago.

BHP is less interested in Anglo American's diamond businesses. And the ASX 200 miner has also flagged its intentions to divest Anglo's South African iron ore and platinum businesses.

Those divestments are complicating matters for Anglo's board. Anglo's management says the risk for its own shareholders is too high under the existing structure. Anglo's investors will be left holding shares in the divested companies, which are forecast to struggle if left to their own devices.

Although, Anglo American has also indicated its own significant restructuring plans. Those include multiple divestments, its Australian coal mines among them.

The Anglo American board also said BHP's initial offer undervalued the company's long-term potential, particularly with the strong demand growth forecast for copper.

This saw Anglo's board also reject BHP's second offer, made on 14 May and valued at some $64 billion.

The third, and likely final, bid came on 23 May. This current bid values Anglo American at a whopping $74 plus billion. BHP shares closed down 2.9% on the day the bid was revealed.

However, the third bid did earn BHP a one-week extension to engage in discussions with Anglo American, and BHP CEO Mike Henry has flown to London for face-to-face meetings.

Should I buy BHP shares now?

Most likely, we'll know at market open whether or not the $74 billion BHP deal has gone through or been permanently tabled. And BHP shares could make some big moves based on the outcome.

Unless, of course, the negotiations are extended.

That would require the green light from Anglo American. But according to anonymous sources cited by Bloomberg, any extension on negotiations is far from certain unless the two sides are already nearing a deal.

So, should I buy BHP shares now before the acquisition outcome is announced?

Well, Novus Capital's John Edwards has the ASX 200 miner as a 'hold' for now (courtesy of The Bull).

"The market is concerned BHP may be offering too much for Anglo American," Edwards said. "On the positive side, Anglo American has some of the best copper mines in the world."

Indeed, those are the two big concerns.

A successful $74 billion deal could see the ASX 200 miner come under short-term pressure.

However, with the global charge towards electrification showing no signs of slowing down, copper demand growth is widely forecast to see the red metal continue to trade at new all-time highs over the months and potentially years ahead. (Though there will certainly be some pullbacks along the way.)

So I think investors with a long-term horizon would do well to buy BHP shares ahead of the announcement, which could see BHP become the largest copper producer on Earth.

The post Should you buy BHP shares now before tonight's Anglo American takeover reveal? appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed on Friday trading for $44.64. In morning trade on Monday, shares are swapping hands for $44.96 apiece, up 0.7%.

That compares to a 0.6% gain on the ASX 200 at this time.

And it's handily outpacing the 0.5% loss posted by Fortescue Metals Group Ltd (ASX: FMG) shares and the 0.7% loss of Rio Tinto Ltd (ASX: RIO) shares, both of which are slipping despite a 0.8% bump in the iron ore price to US$120.40 per tonne.

The BHP share price may be outperforming its rivals as investors eye the looming deadline for the ASX 200 miner's $75 billion takeover proposal of Anglo American (LSE: AAL).

Takeover deadline fast approaching

Unless you've just emerged from four weeks hiding under a rock, you're probably aware of BHP's acquisition goals of UK-listed Anglo American.

The BHP share price initially came under pressure when the first takeover bid was announced on 26 April.

With global copper demand surging and forecast to remain strong, sending the red metal to record highs last week, BHP is primarily interested in Anglo's portfolio of high-quality copper assets. Although the miner's Queensland-based coal mines are also on the agenda.

Complicating matters, BHP's takeover proposal involves divesting a number of Anglo American's assets, including its South African iron ore and platinum businesses and likely its diamond projects.

Labelling the deal as too complex and undervaluing its growth potential, Anglo's board rejected BHP's initial offer.

And the board swiftly rejected its second offer, lobbed on 14 May and valuing the miner around $64 billion, as well.

Enter the third bid, made on 23 May, which now values Anglo American at some $75 billion.

That bid earned BHP a one-week deadline extension under British legislation to negotiate with Anglo's board and make a binding offer. The new deadline is this Wednesday, 29 May.

"BHP looks forward to engaging with the board of Anglo American to explore this unique and compelling opportunity to bring together two highly complementary, world class businesses," Henry said on Thursday, when the BHP share price closed the day down 2.9%.

According to Liberum Capital research analyst Ben Davis (quoted by The Australian Financial Review), BHP could still increase its offer price.

However, Davis noted, "We are at a level where shareholders are increasingly vocal on capital discipline."

Davis added:

They have clearly got bored of bidding against themselves in a vacuum and have said they will not be increasing this offer any further … except in the situation of Anglo or an interloper coming up with a new acceptable number.

The BHP share price is up 4% over the past 12 months.

The post BHP share price marching higher amid fast approaching $75 billion takeover deadline appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

BHP Group Ltd (ASX: BHP)

The BHP Group share price is down 2.5% to $45.02. The market has responded negatively to news that the Big Australian has made a third offer for Anglo American plc (LSE: AAL). And while the offer has been rejected, the two parties will continue discussions for another week. Commenting on the rejection, the Anglo American board said: "The Board considered BHP's Latest Proposal carefully, concluded it does not meet expectations of value delivered to Anglo American's shareholders, and has unanimously rejected it." It then adds that it is "willing to continue to engage with BHP and its advisers on this topic and has therefore requested a one week extension to the PUSU deadline which has been consented to by the Panel."

Nufarm Ltd (ASX: NUF)

The Nufarm share price is down over 4% to $4.81. This follows the release of the agricultural chemicals company's half year results. Nufarm reported revenue of $1.8 billion but a statutory net profit after tax of just $49 million. The good news is that a stronger second half is expected. Nufarm CEO, Greg Hunt, said: "Despite challenging conditions, Nufarm delivered a solid result for the first half of fiscal 24. For FY24 we expect EBITDA of between $350 million and $390 million. The mid-point of our guidance implies growth of 25% YoY in EBITDA in the second half of FY24."

Peninsula Energy Ltd (ASX: PEN)

The Peninsula Energy share price is down almost 7% to 11.2 cents. This uranium miner is in the process of raising funds. Earlier this week, it revealed that strong demand and support was received from both new and existing global institutional and sophisticated investors as part of its fully underwritten $105.9 million equity raising. The retail component of this raising opened this morning. The proceeds are expected to fully fund operations at the flagship Lance Projects to sustainable free cash flow in 2025.

Regis Resources Ltd (ASX: RRL)

The Regis Resources share price is down 7.5% to $1.96. Investors have been selling Regis Resources and other ASX gold shares on Thursday following a sharp pullback in the gold price overnight. This has seen the S&P/ASX All Ordinaries Gold index lose almost 4% of its value today.

The post Why BHP, Nufarm, Peninsula Energy, and Regis Resource shares are sinking today appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed yesterday trading for $46.24. In morning trade on Thursday, shares are swapping hands for $44.96, down 2.8%.

For some context, the ASX 200 is down 0.9% at this time.

BHP's underperformance today comes following the latest developments in its ongoing multi-billion takeover efforts of Anglo American (LSE: AAL).

What's happening with the Anglo American takeover?

The BHP share price is under selling pressure after the ASX 200 miner reported that it had lobbed a third improved takeover offer for Anglo American. And that this offer, too, was swiftly rejected by Anglo's board.

BHP announced its first takeover bid back on 26 April.

The big Aussie miner is mostly interested in Anglo copper assets. Should BHP succeed in its acquisition, it will become the world's top copper producer. BHP has indicated it will likely divest some of Anglo's assets, like its South African platinum and iron ore projects.

The first takeover offer was rejected as undervaluing Anglo's assets and growth prospects and being too complex. The BHP share price initially fell on that news as well.

On 14 May BHP reported a sweetened offer valued at around $64 billion. This was also quickly waved off by Anglo's board.

This third, and likely final, offer is valued at $59.64 per Anglo American share, a hefty premium to Anglo American's recent share price. The new offer equates to around $74 billion.

"BHP's revised proposal will offer immediate value for Anglo American shareholders and allow them to benefit from the long-term value generation of the combined group," BHP CEO Mike Henry said.

But Anglo American chairman Stuart Chambers is not convinced. "The board is confident in Anglo American's standalone future prospects," he said.

But that doesn't mean a deal is off the table.

If Henry's goal was to get negotiations rolling in earnest, it looks like he may have scored.

According to Chambers:

The board is willing to continue to engage with BHP and its advisers on this topic and has therefore requested a one-week extension to the PUSU deadline which has been consented to by the panel.

The one-week extension moves the new takeover deadline to 29 May.

"BHP looks forward to engaging with the board of Anglo American to explore this unique and compelling opportunity to bring together two highly complementary, world class businesses," Henry said.

Commenting on the developments pressuring the BHP share price today, James Whiteside, metals and mining corporate research director at Wood Mackenzie said (quoted by Bloomberg), "The companies believe that they're getting closer. Anglo has probably signposted what needs to happen to get it over the line."

BHP share price snapshot

The BHP share price is up 3% over the past 12 months.

The post Deal or no deal? Why the BHP share price is crumbling today appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set for a tough session on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 54 points or 0.7% lower this morning. In the United States, the Dow Jones was down 0.5%, the S&P 500 fell 0.3%, and the Nasdaq dropped 0.2%.

BHP makes third offer for Anglo American

BHP Group Ltd (ASX: BHP) shares will be in focus on Thursday after the mining giant confirmed that it has made a third offer for Anglo American plc (LSE: AAL). However, despite bumping its offer nicely for the copper miner, BHP has once again had its proposal rejected. Anglo American said: "The Board considered BHP's Latest Proposal carefully, concluded it does not meet expectations of value delivered to Anglo American's shareholders, and has unanimously rejected it." In response to the news, BHP shares ended the day 4.5% lower on Wall Street.

Oil prices drop

It looks set to be a disappointing session for ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.7% to US$77.32 a barrel and the Brent crude oil price is down 1.5% to US$81.67 a barrel. Oil prices are on track for a third consecutive decline.

Xero FY 2024 results

The Xero Ltd (ASX: XRO) share price will be one to watch today when the cloud accounting platform provider releases its FY 2024 results. Goldman Sachs has pencilled in a 22% increase in revenue to NZ$1,709 million. This is a touch ahead of the consensus estimate of NZ$1,696 million. Goldman also expects Xero's earnings to grow quicker than the market is expecting. It is forecasting EBITDA of NZ$480 million for FY 2024. This represents a 59% increase on the prior corresponding period and is ahead of the consensus estimate of NZ$469 million.

Gold price tumbles

It looks set to be a tough session for ASX 200 gold miners Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price tumbled overnight. According to CNBC, the spot gold price is down 1.85% to US$2,381 an ounce. This was reportedly driven by profit taking from traders after some strong gains recently.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

At the time of writing, the miner's shares on Wall Street are down almost 4% on the news. This doesn't bode well for things locally today.

Third offer

BHP advised that on 20 May it submitted an increased and final offer ratio to the Board of Directors of Anglo American.

It notes that the structure of the revised proposal remains the same as previous proposals and comprises an all-share offer for Anglo American. It will once again be subject to the pro-rata distribution by Anglo American of its entire shareholdings in Anglo American Platinum and Kumba Iron Ore to shareholders immediately before completion of the scheme of arrangement.

Under the terms of the revised proposal, BHP has offered:

• 0.8860 BHP shares for each ordinary Anglo American share, and
• Ordinary shares in Anglo Platinum and Kumba Iron Ore (which would be distributed by Anglo American to its shareholders in direct proportion to each shareholder's effective interest in Anglo Platinum and Kumba)

This final offer ratio represents a total value of GBP31.11 (A$59.64) per Anglo American share or a total consideration of approximately A$74 billion.

It also represents an improvement on the original offer of 0.7097 BHP shares per Anglo American share, as well as its most recent offer of 0.8132 BHP shares per share.

Commenting on the offer, BHP CEO Mike Henry said:

BHP has put forward a final offer ratio of 0.8860 BHP shares for each Anglo American share. This is a significant increase from our first proposal and would provide Anglo American shareholders with 17.8% of a combined BHP and Anglo American. The revised proposal is underpinned by BHP's disciplined approach to mergers and acquisition and our focus on delivering long term fundamental value.

BHP's revised proposal will offer immediate value for Anglo American shareholders and allow them to benefit from the long-term value generation of the combined group. BHP looks forward to engaging with the Board of Anglo American to explore this unique and compelling opportunity to bring together two highly complementary, world class businesses.

Thanks but no thanks

Unfortunately for Mike Henry and his team, this latest offer has been rejected immediately by the copper miner.

Anglo American's chair, Stuart Chambers, revealed that its board believes the company is better off going it alone. He commented:

The Board is confident in Anglo American's standalone future prospects and believes that Anglo American has set out a clear pathway and timeframe to deliver the acceleration of its strategy to unlock significant and undiluted value for Anglo American's shareholders.

In addition, Chambers advised that the offer was not expected to deliver sufficient value to shareholders. He adds:

The Board considered BHP's Latest Proposal carefully, concluded it does not meet expectations of value delivered to Anglo American's shareholders, and has unanimously rejected it. In particular, it does not address the Board's concerns about the structure, which results in significant complexity, execution risks, an extended timeline to completion and consequently has the potential for material value leakage to be disproportionately suffered by Anglo American's shareholders. Multiple engagements with the BHP team have not yet been able to resolve the concerns on these issues.

However, Anglo American has left the door open to further talks. Chambers concludes:

However, the Board is willing to continue to engage with BHP and its advisers on this topic and has therefore requested a one week extension to the PUSU deadline which has been consented to by the Panel.

But whether BHP will be willing to increase its "final" offer remains to be seen.

The post BHP shares on watch after new $74b Anglo American takeover offer rejected appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed up 0.8% on Friday trading for $44.89. In morning trade on Monday, shares are swapping hands for $45.87 apiece, up 2.2%.

For some context, the ASX 200 is 0.5% at this same time.

This comes amid another uptick in copper and iron ore prices, and as the clock ticks down on BHP's takeover bid for Anglo American (LSE: AAL). The alarm is set for 5pm United Kingdom time this Wednesday (early Thursday morning Aussie time).

You see, to move past 22 May, UK regulations stipulate the ASX 200 miner must be involved in two-way negotiations with Anglo, in which case they can ask for more time to strike an agreement. Alternatively, BHP could also come out with an unconditional offer free of any conditions.

So, should investors expect BHP shares will encompass Anglo American?

We'll look at what the experts are saying below.

First, a quick recap.

ASX 200 miner eyeing expanded copper footprint

On 26 April, BHP shareholders learned the miner had made a conditional offer to acquire Anglo American for approximately $60 billion.

BHP is primarily interested in Anglo American's copper assets. The red metal is forecast to remain undersupplied for years despite strong demand growth due to the global electrification push. A successful takeover would see BHP become the world's top copper producer.

However, Anglo American's board swiftly rejected the initial offer as undervaluing the company's growth prospects.

BHP shares made headlines again on 14 May, when the miner returned with an improved takeover bid valued at some $64 billion.

This too was rejected by the Anglo American board.

In the days that followed, investors learned that Anglo American's CEO Duncan Wanblad is now planning to divest its platinum and diamond businesses and sell its Queensland-based coal mines, potentially to ward off BHP's takeover attempt.

BHP has also flagged its intentions to likely sell off some of Anglo's assets, like its platinum and iron ore projects in South Africa.

So, with the clock ticking on a momentous acquisition, what can ASX 200 investors expect?

What's ahead for BHP shares and Anglo American?

Commenting on the prospect of BHP shares enveloping Anglo American's assets, Josh Gilbert, market analyst at eToro said, "We might see a third and final offer from the world's largest miner."

But that's likely to be the final deal.

"BHP CEO Mike Henry has already expressed his frustration at a deal not being met, so the next offer is likely to be the last," Gilbert said.

He noted that despite a difficult past few years "with poor acquisitions, weaker commodity prices, and operating failures", Anglo American "has quality copper mines that the competition wants".

And it's relatively cheap compared to many of its peers.

According to Gilbert:

The business trades at 11 times forward price to earnings, in line with its long-term average and lower than broader markets, showing there isn't much optimism priced into shares right now. 

The bottom line is that this acquisition still may not come to fruition. BHP needs to come to the table with a better offer. However, savvy investors will know that if copper prices keep rising, China's housing crisis improves, and BHP can stay financially disciplined, the business will likely be in a better position years from now. 

Liberum Capital says there are three ways that BHP shares will acquire Anglo American. All of which come with a cost.

According to Liberum (quoted by The Australian Financial Review):

We see three ways to get it over the line 1) a big premium – market talking up at least £30/share, but requires another 35 per cent bump in the offer 2) a radical change in structure – perhaps a BHP/Glencore joint bid for all assets 3) more time – if Duncan [Wanblad] doesn't deliver on his plans, BHP's offer will likely stay on the table.

Liberum added that regardless of the short-term outcome, Anglo American shares and BHP shares are now closely linked:

Anglo American shares will be tied to BHP's performance going forward and if … Wanblad fails to deliver material progress on the proposed restructuring plans over the next 18 months, or if Anglo American shares do not outperform BHP, then shareholders will be looking for BHP to come back with an offer.

BHP shares are up 2% over the past year.

The post BHP shares charging higher as the clock ticks down on the Anglo American takeover appeared first on The Motley Fool Australia.

And while most copper miners are sliding today, alongside the broader market, the future continues to look bright as the red metal surged another 2.0% overnight to US$10,424 per tonne.

That's right near all-time highs. And it sees the red metal up 28% from this time last year, when that same tonne was trading for US$8,122.

As for that strong performance, shares in S&P/ASX 200 Index (ASX: XJO) copper stock Sandfire Resources Ltd (ASX: SFR) are up 57% over the past six months.

And the Aeris Resources Ltd (ASX: AIS) share price has surged 100% over the half year, compared to a 12% gain posted by the All Ordinaries Index (ASX: XAO).

Then there's dual-listed, Canadian-based Capstone Copper Corp (ASX: CSC).

Capstone Copper only began trading on the ASX on 8 April. Since then shares have leapt 20%, compared to a 1% gain posted by the All Ords over this same period.

What's boosting copper prices?

ASX copper stocks have obviously been benefiting from fast-rising copper prices.

The red metal has been supported by strong global demand growth, even though supplies have been disrupted at several major mines worldwide.

Expected interest rate cuts from major central banks, including the US Federal Reserve, could further fuel medium-term demand.

Longer-term tailwinds for ASX copper stocks are likely to come from the globe's ongoing transition to electrification. The highly conductive red metal is a critical component in EVs, the new generation of AI-enabled data centres, and much more.

And despite the copper price already having surged 28% over 12 months, Goldman Sachs believes the metal is due to gain another 15%. The broker forecasts an end-of-year price of US$12,000 per tonne.

So, what's all this about a big short squeeze?

I'm glad you asked!

ASX copper stocks and the big short squeeze

If you follow futures markets, you may have noticed the unprecedented short squeeze that has sent copper prices surging on the Comex over the past few days.

If you're unfamiliar with Comex, it stands for the Commodity Exchange Inc.

The United States-based Comex is the primary futures and options market for trading base and precious metals. Ordinarily, the spread on copper futures on Commex and the price for copper on the London Metal Exchange (LME) vary by only a few dollars.

But as Bloomberg reports, the premium for New York copper futures has rocketed to US$1,200 per tonne, which has never been seen before.

This bodes well for the demand outlook for ASX copper stocks.

The short squeeze reportedly comes in part as traders pile in amid forecasts that copper supply growth will likely lag demand growth for years to come.

According to Matthew Heap, a portfolio manager at Orion Resource Partners:

The broader story is that there are new investment funds that are boosting their exposure to copper for a multitude of reasons, and while that's a global trend, a huge amount of that investment has been heading to Comex.

While ASX copper stocks may not be tapped to fill the immediate supply needs, the dynamics at play here tell me they're well-positioned for the year and potentially years ahead.

Commenting on the unprecedented Comex spread, Jia Zheng, head of trading at Shanghai Dongwu Jiuying Investment Management, said (quoted by Bloomberg), "The short squeeze is set to continue as traders might not be able to ship enough metal from either Chinese bonded warehouses or from Europe ahead of the delivery date."

This certainly goes a long way toward explaining why BHP Group Ltd (ASX: BHP) is so keen to acquire copper-focused Anglo American (LSE: AAL). If successful, this would see BHP become the largest ASX copper stock and, indeed, the biggest copper producer in the world.

The post What this unprecedented short squeeze signals for ASX copper stocks appeared first on The Motley Fool Australia.

Then you've probably been following along with the ongoing saga surrounding the S&P/ASX 200 Index (ASX: XJO) mining giant's takeover bid for Anglo American (LSE: AAL).

BHP shares leapt into global headlines on 26 April after the company lobbed a roughly $60 billion offer to acquire Anglo American.

The ASX 200 miner's main focus here is Anglo's copper assets. Copper prices have been soaring and are widely expected to remain elevated over the longer term amid the world's push towards electrification.

If BHP's takeover succeeds, the Aussie miner will take the mantle of the world's biggest copper producer.

As you're likely aware, Anglo American's board rejected BHP's initial offer as significantly undervaluing its assets and growth potential. The board also believes the offer is too complicated and poses risks for Anglo shareholders.

Yesterday we learned that BHP had come back with an improved takeover offer valued at around $64 billion. An offer that Anglo American's board again rejected.

Commenting on the developments yesterday, CEO Mike Henry said:

BHP put forward a revised proposal to the Anglo American board that we strongly believe would be a win-win for BHP and Anglo American shareholders. We are disappointed that this second proposal has been rejected.

BHP shares closed down 0.2% yesterday.

Will BHP shares ever encompass Anglo American's assets?

How Anglo American shareholders will respond to the latest BHP takeover offer remains to be seen.

In the latest developments, Anglo American announced it would divest its platinum and diamond businesses and sell its Queensland-based coal mines.

Some analysts have flagged this as a move to potentially thwart BHP's acquisition, as Anglo's coking coal assets in Queensland would mesh well with BHP's operations in the state.

If BHP shares were to encompass Anglo American's assets, the ASX 200 miner would also look to divest a number of the company's assets. Those include Anglo's platinum and iron ore projects in South Africa, and likely its nickel assets as well.

Anglo-American shareholders are now faced with a decision of whether to back Anglo CEO Duncan Wanblad and his vision for the company's future or BHP's Henry.

Addressing Anglo American's turnaround plan Wanblad said (quoted by Bloomberg), "We don't need BHP to deliver this strategy, we absolutely do not need them at all. We can deliver this."

Henry had a different take.

"Shareholders must decide which plan creates the greatest value, soonest. Which team has the better track record of execution," he said.

BHP shares are up 2.6% in morning trade today.

Stay tuned!

The post Buying BHP shares? Here's what's happening with the Anglo American takeover appeared first on The Motley Fool Australia.

This was brought into sharp focus last month with the blockbuster $60 billion bid for the British miner Anglo American (LSE: AAL). As it currently stands, BHP Group Ltd (ASX: BHP) and Anglo remain locked in a delicate courtship dance. However, we've seen other marriages that have been proposed and, in some cases, consummated, on the ASX recently.

The merger of the old Newcrest Mining Ltd with US gold mining behemoth Newmont Corporation (ASX: NEM) last year would probably be the best example. But there are many others.

A long story short, M&A seems to be the flavour of the month.

This might cause some consternation amongst some ASX fans of mining shares. After all, there are plenty of examples throughout the ASX's history of miners embarking on acquisition sprees when they are flush with cash at the height of a commodity cycle, only to shred shareholder capital when prices fall, but debts remain.

However, one ASX expert not only reckons that this latest wave of M&A is good for investors but also predicts that merger activity is still on its way up.

Expert: Don't fear ASX mining share M&A

As reported by the Australian Financial Review, BlackRock Mining Trust's Evy Hambro is telling investors not to fear. Hambro argues that, as a general rule, current conditions mean buying other companies or their assets is cheaper and more efficient for miners than building out new mines themselves.

Hambro, whose fund is the world's largest mining fund, has reportedly chided miners for focusing too much on M&A in the past at the expense of shareholder returns. But those are not concerns he appears to currently hold.

Here's some more of what he said:

Right now what we are seeing … is the cost of building new [mine] capacity has risen, we are seeing higher costs of constructing, we are seeing higher risks … around resource nationalism…

So I think the value of assets trading in the liquid market probably doesn't reflect the fully risk-adjusted cost of building new capacity, and I am sure that has caught the attention of many management teams.

We think M&A is just normal business, and there is a point in the cycle when things tend to pick up a bit…. We would be absolutely in support of companies maintaining that disciplined approach to how they allocate capital, and that is an essential part, I think, of maintaining trust with investors and maximising the returns.

So, no doubt that will come as some welcome assurance for many followers of ASX mining shares who might be feeling a little apprehensive about the M&A boom that we've been witnessing. Let's see which company comes up with a marriage proposal next.

The post Why more ASX mining shares could soon turn to takeover bids appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed yesterday trading for $43.25. In morning trade on Tuesday, shares are swapping hands for $43.07 apiece, down 0.4%.

For some context, the ASX 200 is down 0.1% at this same time.

This comes as investors digest the news that BHP returned with an improved takeover offer for Anglo American (LSE: AAL) last week. And that the sweetened offer was rejected by Anglo American's board overnight.

Here's what's happening.

BHP share price slips as sweetened takeover deal rebuffed

As a quick recap, BHP announced it had made a non-binding offer to acquire Anglo American on 26 April for an all scrip offer valued at approximately AU$60 billion.

Interestingly, the BHP share price closed down 4.6% on the day.

BHP is looking to expand its copper footprint. And copper represents 30% of Anglo American's total production. If BHP were to acquire Anglo, it would become the world's top copper producer.

Anglo American's board rejected BHP's offer on 29 April, with chairman Stuart Chambers saying the bid significantly undervalued the company and its growth potential.

Which brings us to the improved offer from BHP, which values the copper miner at 34 billion pounds (AU$64 billion).

But the Anglo board clearly feels this remains too little.

Commenting on the improved takeover offer, Chambers said, "The latest proposal from BHP again fails to recognise the value inherent in Anglo American."

Mike Henry responds

This morning BHP responded to the rejection of its improved offer, stating, "BHP continues to believe that a combination of the two businesses would deliver significant value for all shareholders."

Commenting on the rejection that's seeing the BHP share price dip this morning, CEO Mike Henry said, "BHP put forward a revised proposal to the Anglo American Board that we strongly believe would be a win-win for BHP and Anglo American shareholders. We are disappointed that this second proposal has been rejected."

Henry added:

BHP and Anglo American are a strategic fit and the combination is a unique and compelling opportunity to unlock significant synergies by bringing together two highly complementary, world class businesses.

The combined business would have a leading portfolio of high-quality assets in copper, potash, iron ore and metallurgical coal and BHP would bring its track record of operational excellence to maximise returns from these high-quality assets…

The combination is consistent with BHP's strategy and the revised proposal is underpinned by a focus on delivering long term fundamental value.

The BHP share price is down 15% so far in 2024.

The post BHP share price slides amid no deal on 'compelling opportunity' appeared first on The Motley Fool Australia.