Why did BHP suddenly walk away from Anglo American, and what does it mean for the $60 Billion copper deal?

BHP Group has officially withdrawn its renewed takeover approach for Anglo American, ending a brief but high-stakes attempt to reshape the global mining landscape. The decision, confirmed on Monday, arrives just two weeks before Anglo and Teck shareholders vote on their proposed $60 billion merger, a move set to create one of the world’s most powerful copper producers.

The unexpected retreat marks the second year in a row that Anglo has rebuffed BHP, highlighting both the escalating competition for copper assets and the difficulty of executing major mining M&A in a tightening commodities market.

BHP’s Surprise Bid: What Triggered the Last-Minute Overture

BHP’s overture, revealed by Bloomberg and confirmed in a regulatory filing, was an attempt to challenge the Anglo-Teck tie-up. Though conversations were preliminary, the world’s largest miner believed a combination would bring “strong strategic merits” and unlock value across copper, iron ore, and future-focused minerals.

According to Insiders, Anglo rejected BHP’s latest proposal after determining it was not superior to the in-progress merger with Canada’s Teck Resources.

This came as a shock to portions of the investor community, as BHP CEO Mike Henry had previously signaled a clear focus on organic growth, not major acquisitions.

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Why Copper Is Driving the Battle for Anglo American

Copper sits at the heart of the global energy transition, powering grids, renewable infrastructure, and electric vehicles. Supply constraints have tightened the market, making long-life copper projects increasingly rare and expensive.

BHP, already the world’s largest listed miner, risked losing its copper dominance without significant new assets. Anglo’s copper-rich portfolio, and Teck’s even greater reserves, made the target exceptionally attractive.

Yet even with the strategic logic, the landscape proved unusually difficult:

• Anglo’s shares rose 11–16% this year.
• BHP’s shares lagged, gaining 0.1–2%.
• Investors demanded capital discipline after last year’s failed $49bn bid.

As one Sydney analyst noted, “This is a hard market to do copper M&A. Every asset is expensive.”

What Happens Now for Anglo, Teck, and BHP?

The walkaway clears the runway for Anglo and Teck shareholders to vote on Dec. 9 on a deal that would form Anglo Teck, a new copper powerhouse with major development projects in Chile and Peru.

However, regulatory approvals remain complex:

• Canada wants Anglo to redomicile, a move CEO Duncan Wanblad opposes.
• Regulators in China, the U.S., and Canada must still approve the merger.

For BHP, the focus now shifts back to organic growth in high-value copper regions:

• Escondida (Chile)
• Vicuna (Argentina)
• South Australia copper operations

Industry observers say BHP must prove that walking away was strategic, not a missed opportunity.

A Blow to BHP or a Smart Retreat? What Analysts Say

Investor reactions were mixed:

• Some called it “a last throw of the dice.”
• Others argued BHP acted prudently under sluggish market conditions.
• Portfolio managers see the failed attempt as confirmation that mega-deals are increasingly difficult in global mining.

Under UK takeover rules, BHP is now blocked from making another bid for six months, effectively locking in the Anglo-Teck merger pathway.

FAQ

1. Why did BHP walk away from the Anglo American takeover bid?

BHP withdrew after preliminary discussions with Anglo’s board failed to produce a compelling path forward. Anglo determined the proposal was not superior to its planned $60bn merger with Teck Resources. BHP also reaffirmed confidence in its own organic growth strategy.

2. Was the attempted takeover by BHP expected?

No. The renewed approach surprised analysts and investors because BHP had previously emphasized focusing on existing assets after its unsuccessful 2024 bid.

3. How does the Anglo–Teck merger affect BHP?

If approved, the merger would create a copper giant that could challenge BHP’s dominance. Copper is crucial for electrification and global decarbonization, intensifying competition among major miners.

4. Why is copper so important to these mining companies?

Copper is essential for renewable energy systems, electric vehicles, transmission infrastructure, and global electrification, making it one of the most strategically valuable minerals of the decade.

5. What regulatory hurdles does the Anglo-Teck merger face?

The deal requires approval from regulators in Canada, the U.S., China, and other jurisdictions. Canada also wants Anglo to move its legal domicile to the country, a step Anglo’s CEO opposes.

6. What does BHP’s withdrawal mean for shareholders?

Some investors see the move as disciplined capital management; others believe BHP missed an opportunity. Regardless, BHP now focuses on major copper projects in Chile, Argentina, and Australia.

7. Can BHP make another offer to Anglo American?

Not immediately. UK takeover rules bar BHP from making another bid for six months unless specific exemptions apply.

8. How has Anglo American changed since its South African beginnings?

Founded in 1917 in South Africa as a gold miner, Anglo is now a London-based multinational focused on copper, diamonds, iron ore, and other minerals. Its only remaining South African operation is Kumba Iron Ore.

9. When will shareholders vote on the Anglo-Teck merger?

The vote is scheduled for December 9, where investors will decide whether to form the combined entity “Anglo Teck.”

10. Does BHP still believe the merger made strategic sense?

Yes. In its announcement, BHP maintained that the combination held strong strategic merits but acknowledged it would proceed with confidence in its existing asset pipeline.