BHP(US:BHP) The Economic Times·2025-11-25 09:27Core Viewpoint - BHP Group's last-minute proposal to acquire Anglo American Plc aimed to prevent Anglo from completing its $60 billion merger with Teck Resources, but the bid was quickly withdrawn, raising questions about BHP's strategy and confidence in its copper growth plans [21][22][40]. Group 1: BHP's Acquisition Attempt - BHP's bid was seen as a last-chance effort to negotiate a friendly deal for coveted copper mines, particularly Anglo's South American operations, which are highly regarded in the industry [5][39]. - The offer included a premium to Anglo's current share price, valuing shares at comfortably above £30 compared to a closing price of £27.36 [27][36]. - BHP's proposal was simpler than a previous bid that required Anglo to partially break itself up, which had been rejected as overly complex [28][39]. Group 2: Market Reactions and Implications - The rapid reversal of BHP's bid has left investors and analysts questioning the company's confidence in its standalone growth plans for copper, a metal increasingly critical for global governments [22][40]. - Some investors praised BHP for walking away from the deal rather than risking overpayment, highlighting the challenges of mergers and acquisitions in the current copper market environment [20][41]. - The ongoing conflict between BHP's dependence on iron ore and its relationship with China adds complexity to any potential stock deal, making the acquisition landscape challenging [37][41]. Group 3: Future Considerations - BHP has significant copper growth options, including new mines in Australia and Argentina, but these projects are costly and may not offset short-term production declines [34][39]. - The Anglo and Teck merger is set for a shareholder vote on December 9, which could complicate future acquisition attempts for BHP [25][39]. - Investors are left speculating about the terms of BHP's offer, as the company is now restricted from making another bid for six months under UK takeover rules [35][41].