Anglo American is opening up to dialogue with BHP after rejecting a third offer of $49 billion, paving the way for a potential mining mega-merger. BHP says this is their final offer, but negotiations are possible. Anglo is no longer criticising the value of the offer, a sign that their positions are coming closer together, but is stumbling over the complexity of the restructuring demanded by BHP, which involves splitting up the South African units before the merger.
What's really at stake for BHP? Copper. The company is seeking to rebalance its portfolio, moving away from a dependence on iron ore towards copper, a metal considered essential for the energy transition. With this acquisition, BHP could capture 10% of the global copper market, and strengthen its position in a sector where demand promises to outstrip supply. It remains to be seen whether BHP will maintain its position or whether the lure of copper will lead to a historic deal.
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