Following the latest offer from BHP, at 5pm today (29th May 2024) the extention comes to an end. Below, a 12-point summary of where we are:

1. BHP’s third bid was also rejected by Anglo American’s board, but it no longer stated that it undervalued the company.
2. A one-week extension for talks between the two companies was agreed to see if a deal could be reached, or not.
3. The UK’s Financial Times attributed the decision to proceed with talks, because of an intervention by Blackrock.
4. Blackrock is a shareholder in Anglo American, with just under a 10% equity stake.
5. Talks will now continue until the final fixed deadline of 5pm GMT on Wednesday 29^th May, from which there can be no further extension.
6. Anglo American’s shareholders may be looking for an additional cash sweetener to accept the proposed deal.
7. It is likely that both sides may need to compromise in some way to reach a negotiated and amicable settlement.
8. The proposed deal would not only represent the largest M&A mining transaction this decade, but also the biggest of all time.
9. Anglo American’s attractive Latin American copper mining assets are at the central heart of the possible tie-up. Their role as a critical material in the energy transition is fundamental to a net zero future.
10. BHP may be extremely reluctant to walk away from this deal having withdrawn from a potential takeover of Rio Tinto over a decade ago...
11. ...especially because potential other suitors for Anglo American (rumoured to be Glencore and Rio Tinto) are waiting in the wings.
12. The big question – Were the potential merger to proceed, could this create a frenzy of rival M&A activity for other corporate copper assets, triggering a wave of industry consolidation?