CopperClosex 2018

Offer for Anglo American

Value creation from combining two quality businesses

Consistent with our strategy and supported by our recent track record of high performance – driven by operational excellence and disciplined capital project execution – we are pursuing the proposed combination of BHP and Anglo American.

The combined company would have an exceptional portfolio of world-class assets, focused on future facing commodities and higher-quality steel-making raw materials. It would create meaningful synergies, and have an enviable growth pipeline with the financial capacity to advance them. 

We believe that both sets of shareholders would stand to gain from the very clear proposal and plan that we tabled to Anglo American. 

Mike Henry, BHP Chief Executive Officer:

“BHP put forward a revised proposal to the Anglo American Board that we strongly believe would be a win-win for BHP and Anglo American shareholders.

The revised proposal represents a 15% increase in the merger exchange ratio and increases Anglo American shareholders’ aggregate ownership in the combined group to 16.6% from 14.8% in BHP’s first proposal.

BHP and Anglo American are a strategic fit and the combination is a unique and compelling opportunity to unlock significant synergies by bringing together two highly complementary, world class businesses. The combined business would have a leading portfolio of high-quality assets in copper, potash, iron ore and metallurgical coal and BHP would bring its track record of operational excellence to maximise returns from these high-quality assets.

The combined business would also have the balance sheet strength, capital discipline and operational capability to execute the attractive pipeline of growth options in BHP and Anglo American’s portfolios.

In putting forward a revised proposal, we have been guided by our capital allocation framework and our view of the fundamental value of Anglo American and BHP.

The combination is consistent with BHP’s strategy and the revised proposal is underpinned by a focus on delivering long term fundamental value.” 

Inclusion and diversity

BHP is a world-leading resources company

We work in more than 90 locations worldwide and our products are sold globally. We've positioned our business to support the megatrends shaping our world. Iron ore and metallurgical coal for the steel needed for global infrastructure and the energy transition. Copper for renewable energy. Nickel for electric vehicles. Potash to support more sustainable farming. A resource mix for today – and critical to the future.