Australian mining giant BHP announced on Monday that it had withdrawn a deal to acquire British rival Anglo American, which would have made it the biggest copper miner in the world.
In an effort to thwart a merger with Canadian rival Teck Resources, BHP, the biggest mining corporation in the world, reportedly made a proposal to Anglo on Sunday, according to Bloomberg News.
However, Anglo rejected the proposal.
“BHP Group confirms that it is no longer considering a combination of the two companies,” the firm said in a statement on the Australian Securities Exchange website.
BHP “continues to believe that a combination with Anglo American would have had strong strategic merits and created significant value for all stakeholders,” the firm said.
“BHP is confident in the highly compelling potential of its own organic growth strategy,” it added.
Asked for comment, Anglo referred AFP to the statement from BHP.
The failed bid is BHP’s second attempt in as many years to take over Anglo American.
After differences over “regulatory risk and cost” in South Africa, where BHP had attempted to divide off Anglo’s platinum holdings in a politically sensitive move that sparked government resistance, it rejected a $49 billion offer to acquire the company last year.
The demand for copper has skyrocketed in recent years due to its use in consumer electronics, solar panels, wind turbines, and electric car batteries.
Additionally, it is utilized in military gear, such as aircraft, and demand for it is rising because to the expansion of data centers and artificial intelligence.
Last month, the industrial metal’s prices reached all-time highs.
The new combined group between Anglo and Teck would be worth more than $50 billion according to the companies’ current market values.
An agreed deal is expected to complete in 12-18 months, subject to regulatory hurdles, said a joint statement.
Shareholders of Anglo American — the bigger of the two firms with revenue of more than $27 billion in 2024 — will own 62.4 percent of the new group and Teck shareholders the remainder.
Teck has said the new group will be “a top five global copper producer”.
In August, US group Peabody Energy walked away from a $3.8-billion deal to buy Anglo American’s steelmaking coal business.
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