(Reuters) – BHP Group is considering making an improved offer for Anglo American (JO:) after its initial $39 billion bid was rejected by the London-listed miner, a source familiar with the matter told Reuters .
BHP is discussing a revised bid for Anglo American in the coming weeks, the source said. Discussions are ongoing and the group has not yet decided on the size and structure of the new proposal, the source added.
BHP said it did not comment on what it called “rumors and speculation” and Anglo American did not immediately respond to a Reuters request for comment.
Anglo American rejected a $39 billion takeover bid from BHP on Friday, saying it significantly undervalued the miner and its future prospects.
Under British takeover rules, BHP has until May 22 to make a formal offer for Anglo American. The company is expected to sweeten its offer of £25.08 a share to try to secure a deal that would create the world’s largest mining company, a metal that is central to the transition to clean energy.
Some Anglo-American investors, who asked not to be identified due to the sensitivity of the matter, told Reuters the company was worth about 30 pounds a share.
Anglo shares closed at £26.43 on Friday.
The focus of BHP’s proposal was copper. The combination with Anglo would create a group that would account for around 10% of global production of the metal, which because of its conductivity and resistance to corrosion is used in everything from electric vehicles and power grids to construction.
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If successful, the deal would be the largest mining takeover in the world in 2024 and would rank among the top 10 largest deals in the industry’s history, according to LSEG.