Australian resources giant BHP said Monday it had dropped a bid to take over British rival Anglo American that would have created the world’s largest miner of copper.
Bloomberg News reported on Sunday that BHP, the world’s largest mining company, had approached Anglo with a bid in an attempt to disrupt a merger with Canadian peer Teck Resources.
But Anglo knocked back the offer.
“BHP Group confirms that it is no longer considering a combination of the two companies,” the firm said in a statement on the Australian Securities Exchange website.
BHP “continues to believe that a combination with Anglo American would have had strong strategic merits and created significant value for all stakeholders,” the firm said.
“BHP is confident in the highly compelling potential of its own organic growth strategy,” it added.
Asked for comment, Anglo referred AFP to the statement from BHP.
The failed bid is BHP’s second attempt in as many years to take over Anglo American.
Last year it walked away from a $49 billion offer to buy the firm after disagreements over “regulatory risk and cost” in South Africa, where BHP had sought to split off Anglo’s platinum holdings in a politically sensitive move that stirred government opposition.
Copper demand has exploded in recent years, with the metal needed for solar panels, wind turbines, electric-vehicle batteries and consumer electronics.
It is also used in military hardware, including aircraft, and there is growing demand linked to the boom in artificial intelligence and data centres.
Prices of the industrial metal soared to record highs last month.
The new combined group between Anglo and Teck would be worth more than $50 billion according to the companies’ current market values.
An agreed deal is expected to complete in 12-18 months, subject to regulatory hurdles, said a joint statement.
Shareholders of Anglo American — the bigger of the two firms with revenue of more than $27 billion in 2024 — will own 62.4 percent of the new group and Teck shareholders the remainder.
Teck has said the new group will be “a top five global copper producer”.
In August, US group Peabody Energy walked away from a $3.8-billion deal to buy Anglo American’s steelmaking coal business.
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