By Christian Moess Laursen


Shares in Anglo American soared in early trading on Thursday after the diversified miner received an unsolicited takeover approach from Australian mining giant BHP.

At 0801 GMT, shares were up 12% at 2,462.50 pence.

In a response to press reports, the London-listed miner said late Wednesday that its board is currently reviewing an all-share offer from BHP. Anglo American has a market capitalization of about $35 billion.

A potential offer would be contingent on Anglo American spinning off its two South African units, Anglo American Platinum and Kumba Iron Ore.

Analysts are citing Anglo American's current low valuation and copper assets as the main drivers behind the approach.

The company has seen its market capitalization diminish from around $72 billion since Chief Executive Duncan Wanblad took the reins in April 2022. Its shares have declined roughly 41% since then.

A tie-up of the companies would make BHP the largest copper producer in the world, according to RBC Capital Markets.

Prices for copper are up 15% so far this year, reflecting expectations that demand for the metal will rise as the world decarbonizes and supply will be constrained.


Write to Christian Moess Laursen at christian.moess@wsj.com


(END) Dow Jones Newswires

04-25-24 0427ET