BHP spoke to Anglo American again, but won’t be making another formal approach

Core Viewpoint - BHP Group has decided not to pursue a takeover of Teck Resources amid ongoing negotiations for Teck's merger with Anglo American, which is valued at $64 billion [1][2]. Group 1: BHP's Position - Initial discussions took place between BHP and Anglo American, but BHP has confirmed it will not proceed with a combination of the two companies [2]. - A significant challenge for BHP was Teck's ability to match any unsolicited bid during the negotiation phase [2][3]. Group 2: Anglo American and Teck Merger - Anglo American is expected to pay a $330 million break fee if it withdraws from the deal with Teck, which would impact BHP financially if it took control of the merger [3]. - An extraordinary meeting for Anglo shareholders is scheduled for December 9, where a vote on the Teck merger is anticipated to pass, resulting in a $50 billion merger that would give Anglo a 70% exposure in copper [4]. Group 3: BHP's Future Strategy - Following the decision to step back from takeover attempts, BHP plans to focus on its own growth strategies, particularly in the Chinese market, where it faces challenges due to state-backed competition [5]. - BHP shares opened at $40.37 on the trading day following the announcement [5].