Anglo bid: Why Glencore, Rio Tinto may sit on their hands for now
Two of BHP Group’s biggest rivals are sitting on the sidelines for the moment as they watch to see how a takeover offer for Anglo American will play out.
A representative for Rio Tinto declined to comment, while a Glencore spokesperson said the company doesn’t comment on market rumours and speculation. However, any deal for Anglo is likely to be complex because of the company’s structure and unique mix of commodities, and rivals will be wary of taking on heavyweight BHP. The industry must also contend with its recent past: Rio Tinto in particular has spent much of the last decade seeking to placate investors following a series of disastrous deals and other missteps.
BHP’s solution was to propose that Anglo first spin off its holdings in two listed South African companies before it proceeds with a takeover — a plan that Anglo has rejected as"highly unattractive" for its shareholders. Glencore, which has been one of the industry’s most active dealmakers, is also focused on whether specific Anglo assets would come up for sale as a result of the takeover drama.
Investment bankers that haven’t already been hired by Anglo or BHP to advise on the deal are actively pitching potential deals to other large miners including Freeport-McMoRan and Vale, as well as Japanese trading houses and Middle East state-backed investors.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Glencore weighs making a bid for Anglo AmericanGlencore weighs making a bid for Anglo American - report
Read more »
BHP can't cherry pick Anglo’s assets: Investors - SABC News - Breaking news, special reports, world,BHP can't cherry pick Anglo American assets without paying a hefty premium, Anglo investors said.
Read more »
Imagine South Africa without Anglo AmericanWhat will it mean for the JSE if the stalwart share disappears?
Read more »
Cosatu urges PIC, other Anglo shareholders to reject BHP bidCosatu urges PIC, other Anglo shareholders to reject BHP bid
Read more »
Does BHP need to be in SA's good graces for an Anglo deal to fly?Does BHP need to be in SA's good graces for an Anglo deal to fly?
Read more »
BHP's bid for Anglo: A test of South Africa's corporate cloutMpumelelo Mkhabela | BHP's bid for Anglo: A test of South Africa's corporate clout
Read more »