Anglo Opens Talks With BHP After Rejecting $49 Billion Offer
- BHP has increased offer but still wants complicated structure
- Deadline for BHP to commit to offer is extended to May 29
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Anglo American Plc agreed to enter talks with larger rival BHP Group after rejecting a third proposal worth about $49 billion, opening the door for the first time to what would be the biggest mining deal in over a decade.
The two companies have been in discussions in recent days after BHP submitted its latest bid, which still requires Anglo to first spin off majority stakes in South African platinum and iron ore companies. While Anglo had also criticized the first two approaches as too cheap, its statement on Wednesday focused on objections to the structure of the deal, which it says is too complicated and requires its own shareholders to bear too much of the risk.