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Investing.com -- BHP Group offered approximately £40 billion ($53 billion) in its unsuccessful attempt to acquire Anglo American Plc, according to a report from Bloomberg News, citing people familiar with the matter who asked not to be identified.
The commodities giant proposed around £34 per share for Anglo American, representing a premium of about 24% to Anglo American’s closing price of £27.36 on November 20, when the company had a market value of roughly £32 billion.
The offer included both stock and cash components. BHP sent a detailed proposal to Anglo American’s board late on November 20.
Bloomberg first reported the takeover approach on November 23, after which BHP publicly confirmed the discussions but announced it had decided to withdraw. Neither company has publicly disclosed the financial details of BHP’s bid.
Anglo American rejected the offer, believing its own planned acquisition of Canada’s Teck Resources Ltd. would create more value. The company was also worried about a potentially lengthy regulatory approval process for a BHP merger, which could expose the deal to significant value fluctuations due to volatility in BHP shares before completion.
BHP shares have increased about 6.4% in London this year, giving the company a market capitalization of approximately £105 billion.
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