STORY: Mining giant BHP proposed a near $39 billion takeover of Anglo American on Thursday (April 25)...
Offering a deal which would create the world's biggest copper miner.
BHP, the world's largest listed miner, said its offer valued each Anglo share at $31.39, at a premium of 31%...
Sending the London-listed company's shares 13% higher in early trading.
Australia's BHP also said it will carve out Anglo's iron ore and platinum assets in South Africa, where it has no activities itself.
Anglo, which owns mines in countries including Chile, South Africa, Brazil and Australia, said it was reviewing BHP's unsolicited, non-binding and highly conditional proposal.
Under UK takeover rules, BHP has until May 22 to make a firm offer.
Analyst at Hargreaves Lansdown, Susannah Streeter:
"If this bid is accepted, it would be a mega deal in the mining industry. And the reason why BHP is particularly interested in Anglo American is because it has some pretty vast copper operations and copper is seen as crucial in the green transition."
And if agreed, this deal would forge a copper mining group with about 10% of global output.
It could also trigger further transactions in the sector, which has seen a rush of mergers and acquisitions as companies review portfolios to raise exposure to metals considered critical to the global energy transition.
A takeover of Anglo by BHP would likely be among the 10 biggest-ever mining deals by value.
It has the potential to delist Anglo from the London market - a fresh blow to an exchange that is struggling to retain big companies and attract IPOs.
But some said BHP would need to offer more to get a deal.
