BHP Group confirms does not intend to make firm offer for Anglo American

BHP Group Ltd (BHP) confirms that it does not intend to make a firm offer for Anglo American plc (NGLOY). Mike Henry, BHP Chief Executive Officer said: “BHP will not be making a firm offer for Anglo American. BHP is committed to its Capital Allocation Framework and maintains a disciplined approach to mergers and acquisitions. While we believed that our proposal for Anglo American was a compelling opportunity to effectively grow the pie of value for both sets of shareholders, we were unable to reach agreement with Anglo American on our specific views in respect of South African regulatory risk and cost and, despite seeking to engage constructively and numerous requests, we were not able to access from Anglo American key information required to formulate measures to address the excess risk they perceive We remain of the view that our proposal was the most effective structure to deliver value for Anglo American shareholders, and we are confident that, working together with Anglo American, we could have obtained all required regulatory approvals, including in South Africa.” BHP stated in a notice to the London Stock Exchange: “This announcement is being made by BHP without Anglo American’s prior agreement or approval.”