Anglo American surged 12.5 per cent to a nine-month high after the Australian mining giant said it made an offer to buy the London-listed miner, valuing its share capital at $US38.91 billion (AUD$59.7 billion).
BHP confirmed the offer in a statement on Thursday, saying it made a proposal to Anglo American’s board of directors on April 16 “regarding a potential combination”.
The deal would create the world’s biggest copper miner with around 10 per cent of global output. BHP’s UK-listed stock, however, fell 2.7 per cent.
“The deal also means that BHP is going to have access to a much larger amount of copper and iron ore. That’s a key area for future growth and markets are really catching on with that impressive jump in the share price,” said Fiona Cincotta, a senior market analyst at City Index.
It follows BHP’s $9.6 billion acquisition of Adelaide-based OZ Minerals in 2023, creating a South Australian copper precinct with copper and gold mines at Prominent Hill and Carrapateena joining BHP’s major mine at Olympic Dam.
The FTSE 350 industrial metal miners index rose 1.7 per cent, while the blue-chip FTSE 100 rose 0.6 per cent to 8,083.90, after hitting a record high of 8,098.14 earlier.
“The FTSE 100 doesn’t have as many tech stocks compared to US indices and you’ve got the idea of the weaker pound, which is also supported and UK index,” Cincotta added.
– With AAP
