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UK-based mining giant Anglo American says it has been approached by larger rival BHP about a potential multi-billion dollar takeover offer.<\/b><\/p>\n
Anglo American told the BBC that the proposal is currently being reviewed by its board of directors but did not reveal the value of the offer.<\/p>\n
BHP did not immediately respond to a request for comment from the BBC.<\/p>\n
If the deal goes ahead it would be one of the mining industry’s biggest mergers in years.<\/p>\n
Anglo American – which operates mines in countries like Chile, South Africa, Brazil and Australia – has a stock market value of around \u00a329bn.<\/p>\n
Australian-based BHP is the world\u2019s largest publicly listed mining company with a market valuation of about A$229bn ($149bn; \u00a3119.5bn).<\/p>\n
The move comes a year after BHP bought copper producer Oz Minerals for A$9.6bn ($6.2bn; \u00a35bn).<\/p>\n
If finalised, the deal would increase BHP’s access to copper, through Anglo American’s operations in South America.<\/p>\n
The price of copper has risen on the global markets by more than 15% this year.<\/p>\n
Prices have jumped due to the metal being in high demand as the shift to clean energy accelerates.<\/p>\n
“Anglo American’s existing footprint in the copper industry is ultimately what lured a mining giant such as BHP,” Tim Waterer, chief market analyst at financial services firm KCM Trade told the BBC.<\/p>\n
Anglo American’s share price has fallen by almost 10% in the last year, which could have helped make it an even more attractive takeover target, Mr Waterer added.<\/p>\n
Susannah Streeter from investment platform Hargreaves Lansdown said BHP’s takeover plan “will send a fresh chill through the City of London.”<\/p>\n
“There are concerns that if the deal goes through it could be the tip of the iceberg and more giants could leave the exchange.”<\/p>\n
BHP’s proposal makes any offer conditional on Anglo American giving up its stake in platinum and iron ore operations in South Africa.<\/p>\n
Under the UK’s merger and acquisition rules, BHP has until the close of business on 22 May to make a formal offer for Anglo American. <\/p>\n<\/div>\n