Why did BHP walk away from Anglo American? Inside the mining giant’s abandoned takeover attempt

BHP Group has decided to withdraw its renewed approach to acquire Anglo American Plc, the multinational mining company with origins in South Africa dating back more than a century. The decision closes a brief, unexpected effort by the world’s largest mining company to challenge a planned merger between Anglo American and Canada’s Teck Resources.

The Australian-based mining giant confirmed Monday that it had held preliminary talks with Anglo American but would no longer pursue a combination. “We will now concentrate on our existing operations and organic growth strategy,” BHP stated in a regulatory announcement.

The development follows a Bloomberg report that BHP had made a fresh offer for Anglo American, a company it previously attempted to acquire in 2024. Sources familiar with the matter said Anglo reviewed the proposal and ultimately rejected it, determining it did not surpass the benefits of its ongoing deal with Teck Resources.

Although headquartered in London today, Anglo American’s roots lie in South Africa, where it was founded in 1917. Initially a gold mining enterprise, the company expanded into diamonds, coal, and other minerals over the decades. Following the unbundling of its platinum business earlier this year—Anglo American Platinum, now Valterra Platinum—its South African operations are now concentrated in Kumba Iron Ore.

BHP’s renewed interest reflects growing competition within the mining sector, particularly for copper assets, which are expected to see rising demand amid global electrification trends. The approach came just weeks ahead of a planned shareholder vote for Anglo and Teck, aimed at creating a copper-rich company valued at over $60 billion.

BHP shares initially rose 1.3% in Sydney trading on Monday before trimming gains to close slightly higher. Analysts noted the announcement raised questions about BHP’s strategic focus, as CEO Mike Henry had repeatedly emphasized the company’s commitment to its current portfolio following the 2024 bid.

Copper mining assets with long operational life are scarce and highly valued, making mergers and acquisitions challenging. Jamie Hannah, deputy head of investments at Van Eck Associates, said BHP’s attempt highlighted the difficulty of striking deals in a competitive market, especially with high-demand assets like copper. “This wasn’t a failure,” Hannah said. “It’s about navigating complex deals in a tough market.”

The 2025 proposal was reportedly simpler than the previous bid and came after Anglo’s exit from the South African platinum sector, theoretically making the deal more feasible. However, since BHP’s last approach, its shares have softened, while Anglo American’s stock in London has increased by roughly 11%. Investor support for the Teck merger remains strong.

Market analysts, including Glyn Lawcock of Barrenjoey Markets, suggested BHP may have hoped to capitalize on a last-minute opportunity but must now focus on its own major copper operations. These include the Escondida mine in Chile, the Vicuna project in Argentina, and its South Australian holdings.

In its statement, BHP acknowledged that a merger with Anglo American would have offered strategic advantages and value creation for shareholders, but emphasized confidence in the growth potential of its existing portfolio. Advisory support for the latest approach came from Lazard Inc., UBS Group, and Barclays Plc. Anglo American declined to comment, while shareholder votes on the Teck merger are scheduled for December 9, pending regulatory approvals in jurisdictions including China, the U.S., and Canada.

FAQ

Why did BHP withdraw its bid for Anglo American?
BHP decided the merger would not be pursued and opted to focus on its existing operations and growth strategy.

What is the Teck-Anglo American deal?
Anglo American and Canada’s Teck Resources plan to merge, creating a copper-rich company valued at over $60 billion.

Where is Anglo American headquartered?
Although founded in South Africa, Anglo American is now headquartered in London, UK.

What prompted BHP’s renewed approach?
The company was likely seeking to acquire high-quality copper assets amid rising global demand, but the timing coincided with the pending Anglo-Teck deal.

Who advised BHP on the proposal?
Lazard Inc., UBS Group AG, and Barclays Plc acted as financial advisers.