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Anglo American has agreed to extend the deadline for BHP to formalise a takeover offer after the UK-listed group rejected a third approach from the world’s largest miner.
BHP now has until 5pm UK time next Wednesday to make a formal bid for its smaller rival, Anglo said in a statement on Wednesday.
The Australian group said in a separate statement it had made a third offer on Monday valuing Anglo at £31.11 a share based on the May 22 closing price, or about £38.6bn.
Anglo said that the latest proposal valued its shares at £29.34 based on the April 23 closing price. BHP’s previous offer valued Anglo at £27.53 per share, or £34bn. It had initially offered £25 a share, or £31bn.
BHP’s new all-share proposal would still require Anglo to spin off its South African platinum and iron ore businesses, a condition that has sparked controversy in South Africa in an election year.
Anglo said in a statement: “The board and its advisers have engaged with BHP and its advisers on multiple occasions with a particular focus on the proposed structure and associated risks. The board continues to believe that there are serious concerns with the structure given that it is likely to result in material completion risk and value impact that disproportionately falls on Anglo American’s shareholders.”
Anglo shares increased 0.5 per cent to £27.