Mining heavyweight BHP has officially ended its latest efforts to acquire Anglo American after failing to win support for a potential deal.
The Australian company confirmed that it recently held early-stage discussions with its rival but has now decided not to pursue a merger any further.
The announcement marks another setback in BHP’s long-running ambition to combine with the FTSE 100 mining group.
Second Rejection Ends Fresh Negotiations
BHP’s latest move follows an earlier takeover attempt that collapsed more than a year ago.
That proposal, valued at approximately £39 billion, was turned down by Anglo American’s board, prompting BHP to abandon its plans at the time.
After reopening discussions in recent weeks, the mining giant has once again stepped back, saying it is no longer considering a transaction despite believing the combination would have created significant strategic benefits.
Anglo American Focuses on Teck Resources Deal
With BHP out of the picture, Anglo American remains committed to its proposed merger with Canadian mining company Teck Resources.
The transaction, valued at about $53 billion (£39 billion), is moving through the approval process, with shareholders expected to cast their votes on December 9.
Before the deal can be finalized, it must also receive regulatory clearance from authorities in China, the United States, and Canada.
Takeover Rules Prevent Another Immediate Bid
Under UK takeover regulations, BHP cannot return with another offer for Anglo American for at least six months unless a material change in circumstances occurs.
Despite ending its pursuit, BHP expressed confidence in its standalone strategy, indicating that it remains focused on expanding its operations through internal growth rather than acquisitions.
Copper Remains the Prize in Global Mining
One of the biggest attractions for BHP has been Anglo American’s extensive copper assets.
Copper has become one of the world’s most sought-after commodities because of its critical role in renewable energy projects, electric vehicles, and other technologies supporting the global transition to cleaner energy.
The growing importance of the metal has significantly boosted Anglo American’s market value.
The company’s shares have climbed by more than two-thirds since the beginning of 2024 and have gained nearly 25% since BHP launched its first bid in May of last year.
Earlier Deal Structure Proved a Major Obstacle
BHP’s original takeover proposal faced strong resistance because it required Anglo American to separate its South African business interests before any merger could proceed.
That condition was viewed as unacceptable by Anglo’s board, ultimately contributing to the collapse of the offer.
Analysts Expect More Mining Industry Consolidation
Although BHP has withdrawn for now, market analysts believe takeover activity across the mining industry is unlikely to slow.
According to Kathleen Brooks of XTB, the proposed Anglo-Teck merger could encourage additional consolidation among major mining companies as firms compete to secure valuable resources needed for future energy and infrastructure projects.
