Mining

Anglo American’s revamp has an inauspicious start

1 Jul 2024

The easiest part of the $41 bln group’s overhaul after BHP’s takeover bid was a sale of its coking coal business. A months-long closure of that unit’s most profitable mine may make an expected $5 bln valuation harder to achieve. That increases the pressure on CEO Duncan Wanblad.

Miner M&A spotlight may shift to Teck and Freeport

27 Jun 2024

BHP’s failed pitch for Anglo American leaves a vacuum for keyed-up mining bankers to fill. Canada’s $25 bln Teck and $70 bln US rival Freeport-McMoRan both offer purer-play copper options. Either could become targets for bigger fish, or even drive consolidation themselves.

Mining M&A stokes coal race against cleaner power

20 Jun 2024

Anglo American will soon offload dirty deposits used to make steel as part of CEO Duncan Wanblad’s overhaul. Rival sales suggest there should be plenty of suitors. Coking deals can pay off for buyers if prices stay high and green options develop slowly, but neither is assured.

Failed Anglo bid is net negative for BHP CEO

29 May 2024

Mike Henry has ditched the Australian miner’s $47 bln attempt to buy its UK-listed rival. He misjudged the difficulty of pushing Anglo to divest South African assets. But he avoided upsetting investors by overpaying, and if his target’s breakup plan falters he can try again.

Rio Tinto’s dual listing belongs in history books

28 May 2024

Activist fund Palliser is overegging the 44% boost holders of the miner’s London stock could get if Sydney became its primary bourse. But there’d be some uplift. And CEO Jakob Stausholm could use a more level M&A playing field as BHP potentially kicks off a wave of consolidation.

Copper’s M&A mania obscures a dysfunctional market

23 May 2024

The red metal is the main driver of BHP’s $46 bln bid for Anglo American. But despite expectations that the energy transition will boost demand, prices are still too low to tempt miners into expanding production. Mergers may help break the deadlock, but aren’t certain to do so.

BHP boss hopes a week is a long time in dealmaking

23 May 2024

Mike Henry has won an extra seven days to try to seal a deal with Anglo American. The trick will be to persuade his harried quarry that its own breakup plan is more risky than BHP's three-step approach. It's a battle of egos, and may yet require upping the $46 bln proposal.

BHP may have to channel Glenstrata to snare Anglo

22 May 2024

The UK-listed miner has rejected the Australian giant’s latest $46 bln offer. Glencore’s 2012 swoop on rival Xstrata produced annual synergies of more than $2 bln. To offer more for Anglo American without hurting his own investors, BHP boss Mike Henry may need something similar.

New Caledonia to Macron: it’s the economy, stupid

20 May 2024

Deadly riots prompted the French president to impose a state of emergency in the Pacific Ocean territory, which holds 5% of world nickel reserves and gives Paris a strategic outpost in the region. To revive the island, a new economic deal would work better than an army crackdown.

Gulf buyer is best hope to revive De Beers sparkle

16 May 2024

Anglo American wants to offload its diamonds group. Hit by cheaper lab-grown gems and falling demand, De Beers will struggle to attract a luxury buyer. A rich Middle East suitor looks the most plausible way to avoid a sale at well below its $7.6 bln book value, or a mere spinoff.

Anglo breakup gives investors a free option on M&A

14 May 2024

The $40 bln miner plans to offload coal, diamond, nickel and platinum assets to help fend off takeover interest from BHP. The standalone strategy may be worth more to shareholders than what its Australian suitor proposed. Yet if it flops, a future takeover might be even easier.

BHP-Anglo impasse more about structure than price

13 May 2024

Anglo American spurned an improved $43 bln bid from its Australian rival. A key obstacle is that BHP wants its target’s investors to bear the risks attached to spinning off unwanted South African units. CEO Mike Henry can remove it by making an offer for the whole company.

Rio Tinto may be dark horse in BHP-Anglo saga

10 May 2024

The $120 bln miner may yet crash the Big Australian’s $39 bln merger. Still, if BHP does win Anglo and Glencore is busy integrating its $7 bln Teck deal, Rio’s key mining rivals will be distracted. That may give CEO Jakob Stausholm a clearer run at the likes of First Quantum.

BHP bombshell puts South African mining in a hole

6 May 2024

The Australian miner’s $39 bln tilt at Anglo American highlights the decline of the country’s once-mighty industry. Blocking the deal would send an even worse signal about South Africa as an investment destination. Pretoria would do better to push for a more acceptable outcome.

Clash of the mining titans will get more bruising

2 May 2024

Australian giant BHP’s $39 bln swing for Anglo American is a contentious, complex land grab for the metals key to a renewable future. In this Viewsroom podcast, Breakingviews columnists discuss the political and financial hurdles, and why this M&A contest has a way to run.

Anglo breakup costs complicate a sweeter BHP deal

1 May 2024

The miner’s Australian suitor is mulling a hike to its $39 bln proposal. But if Anglo American were to demerge its listed South African units as part of the deal, BHP or any other buyer might inherit a $2 bln tax bill. That may limit BHP boss Mike Henry’s scope for generosity.

China can stay on sidelines in BHP-Anglo battle

30 Apr 2024

The People’s Republic may not kick up a stink about a merger like it did with the Aussie miner’s 2008 Rio tilt. Suppliers of copper are more fragmented than those of iron ore, Beijing’s M&A interventionism has matured, and friends like South Africa can lead any deal opposition.

BHP investors throw CEO too short an M&A leash

26 Apr 2024

The miner’s stock fell 4.6% after the company proposed to buy Anglo American at a $39 bln valuation. It suggests shareholders fear boss Mike Henry will end up overpaying. But with his low-ball opener leaving plenty of wriggle room to justify upping the bid, that looks premature.

Anglo American has grounds to play hard to get

25 Apr 2024

The London-listed miner has received an all-share $39 bln bid from BHP. Anglo’s recent woes explain why, but its jumble of assets could be worth more. If boss Duncan Wanblad can show as much by outlining a plan B, he may yet see its $149 bln rival off – or extract a higher offer.

BHP CEO tests his M&A promise in Anglo American

25 Apr 2024

Mike Henry has long sworn off overpaying for deals. A 30% premium for its $37 bln smaller rival looks justifiable. The buyer would then become the world’s largest copper miner and gain better iron ore for green steel. The real trial will come if peers like Rio join the fray.