Anglo Fending Off BHP Is Far From Its Final Battle
More miners could be lurking to pounce as the South African firm sharpens its strategy.
A sign for directions to the Rustenburg base metal refiners at the Waterval smelter, operated by Anglo American Platinum Ltd., outside Rustenburg, South Africa
Photographer: Bloomberg/BloombergMike Henry only has himself to blame for failing in his quest to buy the best parts of miner Anglo American Plc. The chief executive officer of BHP Group Ltd. wanted to do an unconventional £38.6 billion ($49 billion) transaction requiring a carefully choregraphed mating dance. Yet he repeatedly made it easy for Anglo to push him away.
BHP, capitalized at £119 billion, coveted Anglo for its copper assets. They’re a valuable commodity in an electrifying world. What the Melbourne-based giant didn’t want was Anglo’s stakes in two Johannesburg-listed miners focused on platinum and iron ore. So it proposed a two-part deal: Anglo would first transfer ownership of the listed stakes to its shareholders, then BHP would acquire what was left.