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One of the world’s largest mining companies, Australia’s BHP, has formally withdrawn its interest in a takeover of Anglo American, a British multinational, bringing an abrupt end to what would have been one of the most consequential mining mergers of the decade.
The decision arrives just weeks after BHP’s latest pitch for Anglo — its second in a year and a half — was swiftly rejected by Anglo American’s board. Previous rejections, including one in spring last year, were based on claims that BHP’s offer undervalued Anglo American and its future prospects.
BHP issued a statement on Monday formally announcing its withdrawal.
“Following preliminary discussions with the Board of Anglo American, BHP confirms that it is no longer considering a combination of the two companies.”
The retreat marks a clear shift for the company that placed so much effort into a merger with Anglo American. A successful deal would have created a dominant global force in copper production — the metal at the heart of global electric vehicle and microchip production — consolidating major assets under one roof.
“Whilst BHP continues to believe that a combination with Anglo American would have had strong strategic merits and created significant value for all stakeholders, BHP is confident in the highly compelling potential of its own organic growth strategy,” the statement continued.
Anglo American, founded in Johannesburg in 1917, has a portfolio that spans several jurisdictions. Some are located where governments are especially sensitive to strategic resource ownership, including in South Africa.
BHP’s merger bids required Anglo American undertake “two separate demergers” of its stakes in Anglo American Platinum and Kumba Iron Ore as an interconditional part of the deal.
The board said the required twin demergers would create “significant uncertainty” for its investors, noting that Anglo Platinum and Kumba together account for “approximately $15 billion (€13bn) and 34% of the proposed total consideration” and represent a “substantial amount of stock to distribute”.
BHP’s decision to step back suggests a company recalibrating its appetite for risk. In recent years, the miner has favoured targeted acquisitions in potash and copper, but investors have grown wary of mega-deals laden with regulatory hurdles.
By emphasising the “compelling potential” of its organic growth strategy, BHP is signalling a shift to discipline at a moment when markets are rewarding steadier, low-drama expansion over industry-shifting blockbuster takeovers.
The company’s statement also invokes Rule 2.8 of the UK Takeover Code — effectively locking BHP out of making another approach for at least six months unless specific conditions change.
Potential triggers that could reinvigorate the deal include an agreement from Anglo American’s board, the emergence of a rival bidder, or Anglo American proposing changes to the Takeover Code rules.
For now, the withdrawal clears the way for Anglo American to pursue its own restructuring plans and for rival miners to weigh their next moves.
In a few weeks’ time, shareholders will vote on a proposed merger between Anglo and Canada’s Teck Resources, a deal that could create a firm worth over $50bn (€43.3bn).