Anglo American, BHP, M&A, News, Takeover bids

BHP chief takes Anglo bid to shareholders

BHP Anglo

BHP chief executive Mike Henry has made the case for BHP’s proposed takeover of Anglo American at the annual Bank of America Securities 2024 Global Metals, Mining and Steel conference in Miami.

Henry said shareholders had the power in deciding whether they were best placed with Anglo’s proposed restructure or BHP’s $64 billion deal.

“At the end of the day, it’s going to be up to shareholders,” Henry told the audience.

“They have to look at the plans, decide which one they believe is going to create the greatest value soonest, and they have to make a determination as to the likelihood of execution of those plans, including which team they believe is more capable and has a better track record of execution.”

Henry went on to emphasise the company’s determination to not become reliant on mergers and acquisitions, with the strength of BHP’s portfolio and experience another key lever.

“We believe that both sets of shareholders would stand to gain from the very clear proposal and plan that we tabled to Anglo,” he said. “All shareholders would be able to participate in a pretty exciting story.

“However, I also have to note that I’ve always been clear our existing resource base and our multifaceted approach to how we go about building future shareholder value means that BHP is never dependent on acquisitions.

“And that remains the case. We have a very, very hard-won reputation for discipline when it comes to capital allocation and we do not take that lightly.”

When asked by an audience member whether a revised offer would see BHP back off on its requirement to spin-out Anglo American Platinum and Kumba Iron Ore, Henry remained firm in the company’s plan.

“Platinum is not a commodity for BHP,” Henry said. “When it comes to iron ore, I’ve been clear iron ore is not the commodity that we’re looking at for major growth, we’ll look for incremental growth, low capital investment, and so on in the existing (iron ore) business, but it’s not a business that we see as being one of the core growth pillars for us going forward.

“The path towards spinning businesses out is relatively clear, and there’s a long track record of being able to do that successfully.”

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