BHP’s Biggest Rivals Sit on the Sidelines of Anglo M&A Drama

Bloomberg05-03

(Bloomberg) -- Two of BHP Group’s biggest rivals are sitting on the sidelines for the moment as they watch to see how a takeover offer for Anglo American Plc will play out. Most Read from Bloomberg ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBHP’s Biggest Rivals Sit on the Sidelines of Anglo M&A Drama\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-03 22:39 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/bhp-biggest-rivals-sit-sidelines-143930912.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>(Bloomberg) -- Two of BHP Group’s biggest rivals are sitting on the sidelines for the moment as they watch to see how a takeover offer for Anglo American Plc will play out.\nMost Read from Bloomberg\n\n...</p>\n\n<a href=\"https://finance.yahoo.com/news/bhp-biggest-rivals-sit-sidelines-143930912.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BHP","symbol_name":"必和必拓公司","start_time":0,"source_url":"https://finance.yahoo.com/news/bhp-biggest-rivals-sit-sidelines-143930912.html","article_id":"2432044269","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/ryhsV66sg91ZlEfdg81s3A--~B/aD0xODU2O3c9MzAwMDthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/bloomberg_markets_842/faeb0898dbbd9f2090171abb5663277b"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2432044269","pubTimestamp":1714747170,"sourceInfo":{"source_id":"yahoofinance_au","name":"Yahoo Finance AU"},"weMediaInfo":null,"summary":" -- Two of BHP Group’s biggest rivals are sitting on the sidelines for the moment as they watch to see how a takeover offer for Anglo American Plc will play out.Apple Rallies Most in 18 Months on Upbeat Forecast, Buyback. However, any deal for Anglo is likely to be complex because of the company’s structure and unique mix of commodities, and rivals will be wary of taking on heavyweight BHP. The industry must also contend with its recent past: Rio Tinto in particular has spent much of the last decade seeking to placate investors following a series of disastrous deals and other missteps.However, while Rio’s executives have discussed the Anglo situation on multiple occasions and held discussions with its banks, the company doesn’t feel any pressure to make an offer at the moment, people familiar with the situation said. They cautioned that no firm decision has been made, and the situation could change at any time.Rio sees many of the same obstacles that BHP has faced, the people said. Whi","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BHP":"必和必拓公司","BK4585":"ETF&股票定投概念","RIO.AU":"力拓","BK4588":"碎股","BK4168":"多种金属与采矿","RIO":"力拓","BK7511":"ESG概念","BK7507":"资源股","BK7095":"多种金属与采矿","BHP.AU":"BHP GROUP LTD"},"translate_title":"必和必拓最大的竞争对手坐在盎格鲁并购戏剧的场外","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BHP":1,"BHP.AU":1,"RIO":0.9,"RIO.AU":0.9},"content_text":"(Bloomberg) -- Two of BHP Group’s biggest rivals are sitting on the sidelines for the moment as they watch to see how a takeover offer for Anglo American Plc will play out.\nMost Read from Bloomberg\n\nSaudi Arabia Steps Up Arrests Of Those Attacking Israel Online\nApple Rallies Most in 18 Months on Upbeat Forecast, Buyback\nTurkey Confirms All Trade Halt With Israel Over War in Gaza\nTrump Auditions VP Picks Before Wealthy Donors in Palm Beach\nHuawei Secretly Backs US Research, Awarding Millions in Prizes\n\nBoth Rio Tinto Group and Glencore Plc are more focused on waiting for opportunities to snap up specific parts of Anglo’s business as BHP’s bid unfolds, rather than pursuing rival offers for the entire group.\nThe situation remains fluid and could change at any time, according to people familiar with discussions ongoing in the industry, who asked not to be identified. \nA representative for Rio Tinto declined to comment, while a Glencore spokesperson said the company doesn’t comment on market rumors and speculation.\nBHP’s proposal to partially break up and then acquire Anglo has sent an electric charge through the industry as other large producers assess whether they should make a rival bid, while bankers are furiously pitching deals. The mining industry has a history of frenzied periods of M&A marked by bidding wars, hostile takeovers and a fear of missing out. All the big miners at the moment are keen to expand in copper — the primary driver for BHP’s Anglo bid.\nRead: BHP Mega Bid and $10,000 Copper Expose Mining’s Biggest Problem\nHowever, any deal for Anglo is likely to be complex because of the company’s structure and unique mix of commodities, and rivals will be wary of taking on heavyweight BHP. The industry must also contend with its recent past: Rio Tinto in particular has spent much of the last decade seeking to placate investors following a series of disastrous deals and other missteps. \nAnglo has rejected the initial proposal and Bloomberg reported last week that BHP was considering an improved offer. \nRio and Glencore are viewed by many analysts as the most likely interlopers for Anglo. Rio in particular is the only producer with a balance sheet and cash flow comparable to the industry leader. Like BHP, the world’s second-largest miner faces a structural challenge of having too much iron ore in its portfolio and not enough copper. Glencore, meanwhile, is one of the sector’s most aggressive dealmakers. \nRead: BHP’s $39 Billion Bid for Anglo American Was Years in the Making\nHowever, while Rio’s executives have discussed the Anglo situation on multiple occasions and held discussions with its banks, the company doesn’t feel any pressure to make an offer at the moment, people familiar with the situation said. They cautioned that no firm decision has been made, and the situation could change at any time.\nRio sees many of the same obstacles that BHP has faced, the people said. While Anglo’s copper mines are attractive, many of its other businesses are either underperforming or would be a poor fit in its portfolio. BHP’s solution was to propose that Anglo first spin off its holdings in two listed South African companies before it proceeds with a takeover — a plan that Anglo has rejected as “highly unattractive” for its shareholders.\nHowever, Rio will be watching closely to see if BHP’s approach succeeds in shaking Anglo’s copper assets free from the rest of its operations, or forces Anglo to restructure in a way that makes its copper business a simpler target, the people said. Rio has long admired Anglo’s giant Collahuasi copper mine in Chile, for example, and Bloomberg has reported previously that it made offers to both Anglo and co-owner Glencore for their stakes in the mine during the 2015 commodity slump.\nGlencore, which has been one of the industry’s most active dealmakers, is also focused on whether specific Anglo assets would come up for sale as a result of the takeover drama. \nRead: Anglo’s Stumbles Make It Prey for Mining’s Biggest Predator \nBHP has said it would put some of Anglo’s operations under review if it succeeded in a takeover, and it could also be forced to divest mines to secure antitrust approvals. Anglo itself was also already conducting a review of its business as part of a turnaround plan before the BHP interest became public.\nIn addition to Anglo’s copper assets, Glencore could be interested in buying the company’s South African iron ore unit or Australian steelmaking coal operations, some of the people said. \nGlencore last year made an ultimately unsuccessful bid to buy Teck Resources Ltd., before eventually agreeing to acquire the Canadian firm’s coal unit instead. That deal is expected to close in the coming months. \nThe biggest miners are constantly evaluating their rivals, but that process has accelerated after BHP’s approach became public. Investment bankers that haven’t already been hired by Anglo or BHP to advise on the deal are actively pitching potential deals to other large miners including Freeport-McMoRan Inc. and Vale SA, as well as Japanese trading houses and Middle East state-backed investors.\nAnd while BHP’s biggest rivals aren’t rushing in, there is a clear acknowledgment about what a successful takeover of Anglo would mean. BHP, already the biggest miner, would dwarf all its peers in size, while the addition of Anglo’s copper to its own copper mines and hugely profitable iron ore assets would give it one of the most attractive commodity portfolios.\nExecutives and advisors are also considering the implications for dealmaking elsewhere in the industry. If the biggest player with the deepest pockets spends months or years focused on Anglo, it could leave rivals with a clearer route to other potential targets such as First Quantum Minerals Ltd. and Teck.\nRio has looked in the past at copper miner First Quantum, among other potential deals, but Chief Executive Officer Jakob Stausholm has so far rejected the idea. \nHowever, Bloomberg reported last month that Rio was among the potential bidders for a stake in First Quantum’s African copper business. The Canada-based miner is seeking to raise cash to shore up its balance sheet after its flagship mine in Panama was forced to close.\n--With assistance from Ryan Gould.\nMost Read from Bloomberg Businessweek\n\nWill GM Regret Kicking Apple CarPlay off the Dashboard?\nAI Is Helping Automate One of the World’s Most Gruesome Jobs\nThe State of Crypto Is Anything But Strong\nWhy Banks These Days Are So Excited About Being Boring\nChina Launches Rockets From Sea in Bid to Win the Space Race\n\n©2024 Bloomberg L.P.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2432044269"}