BHP’s Pursuit of Anglo American Likely to Enter Second Phase
After BHP’s confirmation that it would not be making a firm offer for Anglo American, industry sources suggest that the Australian miner’s pursuit of Anglo is far from over. BHP may not have many alternative targets to fulfill its bet on copper, leading to speculation that a second phase of negotiations with Anglo could be on the horizon.
Despite Anglo declining to extend talks with BHP, the Australian miner still sees value in acquiring assets it prizes. While BHP has plenty of growth opportunities, its focus on copper as the next growth area motivated its initial move on Anglo.
Industry insiders believe that there will be a second phase of the deal, with BHP likely to make another run for Anglo at some point. However, with British takeover law requiring a six-month wait period before reengaging with Anglo, BHP will monitor how Anglo progresses its demerger strategy in the meantime.
While BHP is not in a rush to reengage with Anglo, potential alternative copper targets are limited. The competitive environment for acquiring copper assets leaves few options available, with BHP possibly exploring options beyond Anglo, such as First Quantum Minerals or Ivanhoe Mines.
BHP’s clear focus on copper growth has led to speculation about its strategy for critical minerals like lithium or graphite. The company’s reluctance to expand into these areas may stem from a preference for larger, more significant projects in line with their strategic vision.
Overall, BHP’s pursuit of Anglo American and its broader growth strategy reflect the company’s commitment to expanding its presence in the mining industry, particularly in the lucrative copper sector.
