Global mine leader BHP (NYSE: BHP) has temporarily striving for abandoned Anglo American (OTC: Aaukf), one of the Biggest mergers and acquisitions in 2024.
The financial time reported That the Australian miner now regards a deal as ‘too expensive’, given that Anglo’s share price increases in the past months-out of London shares rose by 26% rose in the past 12 months, due to restructuring efforts and a favorable investor sentiment.
BHPs $ 49 billion bid aimed at the copper assets of Anglo, in particular the deployment in the Collahuasi mine in Chile and the Taunted Mine in Peru. These sites belong to the world’s most important copper reserves, where Collahuasi contains 3.93 billion tons of ore on 0.66% copper and quellaveco with 1.1 billion tons by 0.55% copper.
Anglo American responded with rapid restructuring, Sale of his Australian coal activa For $ 3.8 billion, distracting its South African platinum operations and working on Brazilian nickel activa dessages.
“If BHP would offer what they thought was the real value, it is difficult to see why they would offer more now,” noted it George CheveleyFund manager at ninety.
BHP’s interest in Anglo American stems from the rising demand for copper, a critical metal in the energy transition and digital infrastructure. The miner has projected that the demand for buyer will increase six -time in 2050, powered by electrification trends and the explosive growth of data centers. In particular, data centers come up as considerable copper consumers, where the metal is required for power networks, cooling systems and printed circuit boards.
A internal analysis Estimated that the copper used for data centers will grow from 500,000 tons per year to 3 million tons by 2050.
“Digital demand”, as BHP describes, includes copper use in data center construction, electricity generation and infrastructure for power delivery. The miner also expects worldwide electricity consumption to rise by data centers from 2% of the total electricity demand today to 9% against the middle of the century.
Despite the fact that he does not acquire Anglo’s copper assets, BHP has still expanded its copper operation. Earlier this month the company completed one $ 3 billion joint acquisition from the Filo del Sol Project in Argentina with Lundin Mining. The project in the Vicuña district has a likely estimate of 2.22 million pound copper, 2.86 million on our gold and 133.33 million ounces silver.
Yet, regardless of the optimism of the company about the metal, CEO Mike Henry Has established tight criteria for further deals, which means they have to create value and connect with the company’s long -term goals.