The discussions date back to April 2024, when BHP made its first offer to Anglo to combine their copper assets.
Copper in particular has become a key target as producers seek scale and efficiency in the face of tighter supply and the costly hunt for new supplies.
BHP’s six-week pursuit yielded a total of three offers, including a rejection letter from Anglo in May.
Anglo said at the time that the deal fell short of expectations.
In 2025, BHP was prompted to make another bid for Anglo following Anglo’s announcement of a merger with Teck Resources (TSX:TECK.A,TECK.B,NYSE:TECK,OTCQX:TCKRF).
This move was intended to hinder the supposed new entity, which is expected to become the new entity the second largest listed buyer-focused producer after BHP.
In its statement, BHP said it is now dropping its bid for Anglo.
“While BHP continues to believe that a combination with Anglo American would have had strong strategic merits and created significant value for all stakeholders, BHP is confident in the highly compelling potential of its own organic growth strategy,” the mining giant said in its statement.
According to media reports, BHP saw Anglo as a means to maintain its dominance in copper.
“While it remains the world’s largest producer, its lead will narrow in the coming years without significant new projects.” Reuters noted.
Furthermore, Berenberg analysts noted that the Anglo-Teck merger is now more likely to happen after BHP concedes.
“A BHP bid for Anglo would have frustrated that deal, but with BHP now withdrawing, it appears that the intrusion risk to Anglo has been significantly reduced and the Anglo-Teck Resources deal is likely to go ahead, assuming approvals are received,” analysts wrote.
The Anglo-Teck merger is still awaiting approval under the Investment Canada Act.
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Securities Disclosure: I, Gabrielle de la Cruz, have no direct investment interest in any company mentioned in this article.
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