KEY POINTS
- Anglo American’s copper mines are critical for energy transition demand.
- Restructuring has boosted Anglo’s valuation, drawing interest from competitors.
- BHP faces investor caution over spending discipline and high premiums.
Anglo American’s copper mines in Chile and Peru are drawing significant attention as the global demand for copper intensifies.
Copper is vital for energy transition technologies, making assets like Quellaveco and Los Bronces critical for any mining giant’s portfolio.
BHP initially offered $49 billion for Anglo in May but failed to secure the deal. Sources suggest BHP would need to offer at least a 40 percent premium to Anglo’s current share price to reignite talks.
Restructuring boosts Anglo’s value
Anglo American has strengthened its position through asset sales and restructuring efforts led by CEO Duncan Wanblad.
According to Reuters, the company raised nearly $6 billion from selling coal assets and shares in its South African platinum unit.
These moves have improved Anglo’s valuation, with its shares rising over 20 percent in the past year. Analysts say the market increasingly views Anglo as a copper-focused miner, further driving interest in its assets.
BHP weighs spending discipline against potential benefits
While Anglo’s copper mines are appealing, BHP faces internal and external pressure to maintain spending discipline. Investors have expressed concerns about overpaying, especially as BHP’s shares have underperformed relative to Anglo’s.
BHP CEO Mike Henry remains cautious, stating, “Plan A is always to make more of the resources we have.”
Despite this, the market speculates a renewed bid may emerge once Anglo completes its planned spin-off of Anglo American Platinum in 2025.
