(Reuters) -BHP Group is considering making an improved offer for Anglo American (JO:) after its initial $39 billion proposal was rejected by the London-listed miner, a source familiar with the matter told Reuters.
BHP is in discussions about a revised offer for Anglo American that will be made in the coming weeks, the source said. Deliberations are ongoing and the group has not yet decided on the size and structure of the new proposal, the source added.
BHP said it does not comment on what it called “rumors and speculation”, while Anglo American did not immediately respond to a Reuters request for comment.
Anglo American on Friday rejected BHP’s $39 billion takeover bid, saying it significantly undervalued the miner and its future prospects.
Under British takeover rules, BHP has until May 22 to come back with a formal offer for Anglo American. It is expected to tighten its offer to pounds 25.08 per share in a bid to strike a deal that would create the world’s largest miner of , a metal at the heart of the shift to clean energy.
Some Anglo-American investors, who asked not to be named due to the sensitivity of the matter, told Reuters the company is worth around pounds 30 per share.
Anglo shares closed at £26.43 on Friday.
Much of the focus of BHP’s bid was on copper. A partnership with Anglo would create a group responsible for around 10% of global production of the metal, which is used in everything from electric vehicles and electricity grids to construction because of its conductivity and resistance to corrosion.
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If a deal succeeds, it would be the largest mining acquisition globally so far in 2024 and among the top 10 largest deals ever for the sector, LSEG data shows.
