The British multinational mining company Anglo American has turned down a proposed acquisition offer from the world's largest mining house, the BHP group.
Following the rejection this morning, shares of the platinum group dropped over 1%.
BHP's offer for Anglo American was all-share and included conditions such as a requirement for Anglo American to de-merge from Anglo American Platinum and Kumba Iron Ore.
Anglo American believes that the proposal significantly undervalues the company and its future prospects. The board has also argued that the offer is unattractive to its shareholders.
Market analyst Patrick Mathidi commented, “Between now and the 20th May, BHP has to respond and either improve the offer or the offer lapses. So, it’s not done yet, we will have to see how this plays out. Also, remember that this transaction is subject to regulatory approvals.”
