BHP drops $49-billion ‘mining deal of the decade’

Australia

MELBOURNE, May 31, 2024 – Mining giant BHP has abandoned its USD 49-billion bid to acquire Anglo American after its request for further talks was refused, Bloomberg reported on Wednesday.

The proposed deal would have added significant copper resources to BHP’s portfolio and had been hailed as the largest mining deal of the past decade.

Talks were abandoned after Anglo elected not to give BHP further time to iron out details of the proposed deal.

After the news broke, BHP’s shares fell 1.75% in Australia on Thursday – the drop was in line with the company’s peers, however. A report released by Reuters on Thursday cited investors in the company expressing relief over the forgone deal.

BHP is an Australian multinational mining and metals company whose 2023 revenue was USD 53.8 billion. London-headquartered Anglo American is a global mining player whose 2023 revenue topped USD 30 billion.

The companies’ merger would have created a behemoth in the global mining industry, “towering” over its competitors, Bloomberg said.

Photo of copper sample courtesy of Anglo American.

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