Anglo CEO’s Discussion with South Africa Mines Minister Post BHP’s Takeover Proposal
CEO Duncan Wanblad is scheduled to meet with South African mines minister Gwede Mantashe on Friday. This will mark their first encounter since Anglo American, the mining company Wanblad leads, rejected a $39 billion takeover bid from BHP Group. BHP, the world’s largest listed mining group, is reportedly engaging in private discussions with investors as it contemplates its next steps following Anglo’s rejection of its initial proposal.
In the backdrop of BHP’s failed bid, commodities giant Glencore is reportedly exploring the possibility of making an offer for Anglo, potentially setting the stage for a bidding war for the 107-year-old mining company. However, Anglo declined to comment on the upcoming meeting with Mantashe, and the source did not disclose details of the discussion.
BHP’s proposal to Anglo included the suggestion that Anglo divests its shares in subsidiaries such as Anglo Platinum (Amplats) and Kumba Iron Ore as part of the deal. However, Anglo unanimously dismissed this proposal, citing it as opportunistic and significantly undervaluing the company and its future prospects. Investors expressed concerns about potential losses if shares in the South African subsidiaries were unbundled.
Moreover, there is apprehension regarding the reaction of South African regulatory authorities, particularly the central bank, to potential capital outflows from foreign investors unwilling to retain shares in the subsidiaries. BHP CEO Mike Henry, currently in South Africa to gather feedback from investors on the proposed offer to Anglo, maintained a “listening only mode” during a meeting with a fund manager based in Cape Town, according to another source.
BHP executives also engaged in discussions with South Africa’s Public Investment Corporation earlier in the week. Meanwhile, Anglo has announced plans to meet with its top investors to seek their input on BHP’s approach. The unfolding developments suggest a complex landscape as BHP and potentially Glencore maneuver in their efforts to acquire Anglo, a company deeply entrenched in the global mining industry.
