BHP makes new approach to buy Anglo, adding twist to merger saga

Core Insights - BHP Group has renewed its interest in acquiring Anglo American despite Anglo's proposed merger with Teck Resources, indicating a shift in strategy after previously walking away from a potential deal [1][2][4] Group 1: BHP's Acquisition Interest - BHP's renewed approach comes less than three weeks before Anglo and Teck shareholders vote on a $53 billion merger, which would be the largest mining industry combination in over a decade [2][7] - BHP's previous attempt to acquire Anglo last year was for $49 billion but fell through due to disagreements over the deal structure, which required Anglo to divest certain niche assets [4][5] - The current proposal from BHP is reportedly simpler and more straightforward than last year's offer [4] Group 2: Anglo American's Market Position - Anglo American has a market capitalization of approximately $41.8 billion, significantly outpacing BHP's market cap of around $132.2 billion since the previous talks ended [5] - The potential merger with Teck could create a larger copper mining complex than Escondida in Chile, positioning the combined entity as the world's largest copper producer with nearly 2 million tonnes of annual production [6] Group 3: Regulatory and Market Considerations - There are doubts surrounding the Anglo-Teck merger due to Canadian government pressure for stronger commitments to jobs at the proposed Vancouver headquarters [7] - The merger still requires approval from regulators in the US, Canada, and China, adding complexity to the situation [7]