BHP, the world’s largest mining company, remains committed to its proposed takeover of Anglo American. Despite concerns raised by Anglo American regarding execution risks, BHP is focusing on addressing them over the coming week.
Their strategy involves a detailed examination of Anglo’s apprehensions on an individual asset basis. BHP hopes to convince Anglo of the deal’s merits through this approach. Additionally, BHP aims to secure access to Anglo’s financial records and potentially extend the deadline for a final decision.
Obstacles persist, however. The structure of the deal and the fate of Anglo’s South African businesses remain key sticking points. BHP has proposed covering the costs associated with separating Kumba Iron Ore, a move potentially beneficial to the South African government.
If the takeover falls through, pressure will mount on Anglo’s leadership to secure optimal outcomes for its less profitable businesses. This includes maximizing profits from the sale of its diamond unit and ensuring smooth execution of planned spin-offs. Any missteps could open the door for a renewed takeover attempt from BHP.