LONDON/JOHANNESBURG - BHP's resolve to add more copper to its portfolio will be tested by Anglo American investors' demands for a simpler offer for the whole company or a cash sweetener to clinch a deal that could become the biggest in mining history.
" wants to reposition its portfolio sooner rather than later or it will get priced out of future deals as its paper will be too poorly rated," said Ian Woodley, a portfolio manager at Old Mutual which holds shares in both companies. Copper is key from power to construction, and is widely expected to benefit from the green energy transition via additional demand from the electric vehicle sector. New applications including data centres for artificial intelligence are creating buoyant demand for the metal.
"The structure is the key point of contention. If they are willing to compromise for example with a cash offer or adding Kumba to the mix, then it might be good enough to get the Anglo board over the line," he said. And while Anglo said it's engaging BHP, those talks only involve lawyers and bankers from both companies, a separate source said.