BHP Ends Pursuit of Anglo American Merger

BHP.AX +0.91% AAL.L +0.92%

BHP Group Ltd (ASX: BHP) confirmed it is no longer considering a merger with Anglo American plc after initial discussions, formally withdrawing under Rule 2.8 of the UK City Code on Takeovers and Mergers.

The company said that while a combination would have offered “strong strategic merits” and “significant value for all stakeholders,” it remains committed to advancing its own organic growth plans. The announcement ends one of the mining sector’s most closely watched takeover possibilities of the year, following months of speculation over consolidation among major diversified miners seeking to expand in copper and critical minerals.

Under Rule 2.8, BHP’s withdrawal prevents it from making another offer for Anglo American for at least six months, unless certain exceptions occur - including if Anglo American’s board agrees to revisit talks, another party makes a formal offer, or there is a material change in circumstances as determined by the UK Takeover Panel.

The potential deal had been viewed as a bold move that could have created the world’s largest producer of copper - a key metal for the energy transition. However, the complexity of Anglo American’s structure, regulatory hurdles, and possible opposition from shareholders and South African authorities were seen as major obstacles.

BHP’s decision signals a renewed focus on internal projects, including its copper and potash expansion in Chile and Canada, respectively, as the miner continues to position itself around long-term demand from electrification and decarbonization trends.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com

• COP30 Drops Draft on Transition Away from Fossil Fuels

• Equinor Secures Major 10-Year Gas Deal With Czech Republic

• European Natural Gas Plummets to 18-Month Low

Oilprice Intelligence brings you the signals before they become front-page news. This is the same expert analysis read by veteran traders and political advisors. Get it free, twice a week, and you'll always know why the market is moving before everyone else.

You get the geopolitical intelligence, the hidden inventory data, and the market whispers that move billions - and we'll send you $389 in premium energy intelligence, on us, just for subscribing. Join 400,000+ readers today. Get access immediately by clicking here.