BHP says Anglo American shareholders must decide merger fate

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BHP boss Mike Henry has thrown down the gauntlet to Anglo American’s shareholders, after the London-based miner rejected the Australian giant’s latest takeover offer.

BHP boss Mike Henry has challenged Anglo American’s shareholders to decide the best team to maximise returns after Anglo unveiled a new strategy to sell mines and focus on three key materials – a plan Henry described as a “variant” of BHP’s own takeover proposal.Anglo plans to sell its Queensland metallurgical coal mines, offload De Beers diamonds and its platinum business, and focus purely on copper, iron ore and crop nutrients.

“Shareholders know opportunities don’t come along like this for shareholders that often in the resources sector,” Henry said. “At the end of the day, it’s going to be up to shareholders. Wanblad said his team has a proven track record in project delivery. “The new Anglo American will be a higher-margin business with much stronger cash flow generation,” he said.Resource analysts Wood Mackenzie said Wanblad’s move would take the company from being one of the most diversified to most concentrated major miners.

Whiteside said Anglo’s iron ore and copper segments are were outsized cash generators and delivered 58 per cent of the company’s underlying earnings over the past five years.“Looking forward, even without fresh investment, copper will overtake iron ore in cash generation and this would allow Anglo American to use the proceeds to focus on brownfield growth at these core assets,” Whiteside said.

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