Takeover ambitions thwarted: BHP rejected for the second time, officially withdraws from Anglo American acquisition battle

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The world’s largest mining company, BHP, has failed in its latest attempt to acquire rival Anglo American, as the Australian mining giant has officially abandoned the deal, bringing its brief and dramatic takeover battle to an end.

On Monday, BHP released a statement confirming that it had held preliminary talks with Anglo American, but said it was "no longer considering a merger between the two companies." Media reports on Sunday, citing sources, stated that after an evaluation, Anglo American’s board rejected BHP’s latest proposal, judging its terms inferior to the ongoing merger plan with Teck Resources.

This acquisition saga unfolded at a critical juncture. Shareholders of Anglo American and Teck Resources are set to vote on their proposed merger on December 9. If approved, the deal will create a new giant worth more than $60 billion. BHP’s sudden intervention and rapid retreat have directly impacted market expectations for this major industry consolidation.

BHP’s move reflects the entire mining sector’s thirst for quality assets, notably copper mines. As the global energy transition and electrification accelerate, copper demand is expected to continue rising, while supply grows increasingly tight, making companies with quality copper assets hot acquisition targets. BHP’s share price in Sydney rose as much as 1.3% on Monday before giving up most of those gains.

The "Last-Ditch" Timing of the Bid

BHP chose to make its move on the eve of the Anglo American–Teck Resources merger vote, which market analysts saw as a carefully orchestrated "last-ditch effort." According to media citing a person directly familiar with the talks, the December 9 voting deadline prompted BHP to present an alternative proposal to Anglo American.

Barrenjoey analyst Glyn Lawcock described the attempt as BHP’s “last roll of the dice,” aimed at acquiring Anglo American’s coveted South American copper assets. He noted that after last year’s failed bid, Anglo American’s merger plan with Teck and its own asset restructuring changed the calculus for BHP’s board.

However, BHP’s rapid withdrawal also suggests it has no intention of waging an expensive bidding war or launching a "hostile" takeover. Glyn Lawcock said:

“If you are BHP, you wouldn’t want to have regrets about not having at least tried.”

An anonymous banker also expressed surprise, saying:

“I thought they would come back and finish it, but to return and then not see it through is quite surprising.”

Copper Assets: BHP’s Core Target

The core of this bidding war is the battle for copper assets. BHP and other mining giants see copper as the key to future growth. Copper is a vital raw material for the infrastructure required for the energy transition—including power grids, electric vehicles, and renewable energy equipment—making its strategic value increasingly prominent.

Anglo American has long been seen as a potential acquisition target by industry giants precisely because of its highly attractive copper portfolio. If it merges successfully with Teck Resources, the new entity would become one of the world’s top five copper producers. Notably, the two firms have neighboring copper mines at the foot of the Andes in Chile, promising significant synergy after the merger. Since the plan was announced, global mining majors including BHP, Rio Tinto, and Glencore have all been evaluating their options.

Although the statement by BHP CEO Mike Henry did not disclose proposal details, it did stress that “a merger with Anglo American holds strong strategic advantages and would create significant value for all shareholders.”

A Complex Acquisition Target

Despite its attractive copper assets, Anglo American has always been a complex acquisition target. Its diverse asset portfolio includes niche businesses such as diamonds and platinum, which deter many potential buyers who would prefer a pure copper operation.

This isn’t the first time BHP has been frustrated by this complexity. Reportedly, BHP made multiple offers last year, all of which were rejected. At the time, the proposals required Anglo American to first spin off or sell its Australian coal, diamonds, and platinum businesses. Anglo American dismissed the plan as “highly complex and lacking in appeal.” It later went on to restructure some of its own businesses, spinning off its platinum unit.

With BHP’s official withdrawal, the path to merger between Anglo American and Teck Resources has become clearer. BHP said in its statement that it is “confident in the tremendous potential of our own organic growth strategy” and will focus on its existing business. In this acquisition attempt, Lazard, UBS, and Barclays acted as BHP’s advisors. The market’s next focus will be the upcoming shareholder vote and regulatory review processes for the merger in the United States, Canada, and elsewhere.

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