Miners are working.
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mining giant BHP Group said on Thursday it had made an all-share takeover offer to rivals Anglo Americanthe company is valued at £31.1 billion ($38.9 billion).
Anglo American shares soared after the London market opened, rising 13% as of 8:35 a.m.
The company confirmed it had received an “unsolicited, non-binding and highly conditional merger proposal” and said it was reviewing the proposal with advisers.
Australia-based BHP, the largest listed miner based on the company’s market capitalization, said the deal would deliver 0.7097 BHP shares for each Anglo American share to Ordinary shareholders.
According to Reuters analysis, the merger of these companies will form a giant in the field of copper mining and become the largest global player in this field.
Anglo American share price.
BHP will combine its dual-listed operations into a single legal entity in 2022 with a primary listing in Australia.
Markets were closed ahead of the announcement Thursday morning.
The proposal is said to require Anglo American to spin off its stakes in Anglo American Platinum Ltd and Kumba Iron Ore Ltd respectively to Anglo American shareholders.
“The merger will bring together the strengths of BHP and Anglo American in the best possible structure. Anglo American will bring its assets and long-term growth potential. BHP will bring its higher margin cash-generating assets and growth projects as well as larger free cash flow and a stronger balance sheet,” BHP Group said.
This is a breaking news story and will be updated soon.
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