Mining giant Anglo American has rejected calls for extended negotiations over a near £39bn takeover offer.
The 海角视频 company, which is behind the multibillion-pound Woodsmith fertiliser mine in North Yorkshire, recently declined BHP's £38.6bn offer, the third approach, citing concerns about complexity and its "unattractive structure". BHP has requested an extension to talks, which have a deadline of 5pm today (May 29).
BHP's revised offer had included a pledge to invest in South Africa, where Anglo American was founded and remains one of the country's largest employers. Australia's BHP, a global rival to Anglo, has proposed spinning off two of Anglo's South African units, Anglo American Platinum and Kumba Iron Ore, in a move it said would benefit the South African economy by their listing on the Johannesburg Stock Exchange. Support for charitable projects in the country had also been put forward.
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Amidst the talks, Anglo American put forward its own plan to "accelerate value delivery" which includes a significant slowing down of investment in the Woodsmith project - an ambitious move to take natural mineral fertiliser from beneath the North York Moors National Park before transporting it via an underground conveyor system to Teesside in order to be exported worldwide. Despite spending millions on the mine already, Anglo has said it will only produce a feasibility study for the first half of 2025, on which a decision about its future will be made.
Anglo says its crop nutrients business - of which Woodsmith is the main component - is still "integral" to its growth. Other parts of the shake-up proposed by Anglo include the hiving off of its platinum business and its De Beers diamond business.
On calls to extend the talks, BHP 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."
In response, Anglo American said: "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 (put up or shut up) deadline."