BHP Group is considering making an improved proposal to Anglo American PLC after its initial $39 billion offer was rejected by the London-listed miner, according to people familiar with the matter.
The Australian mining company is discussing a revised proposal for Anglo American with its advisers in the coming weeks, the people said, asking not to be identified as the matter is private.
BHP is also discussing the merits of a deal with its main shareholders and trying to convince them to support the offer, the people said. Deliberations are ongoing and there is no final decision yet on the size and structure of the new proposal, the people said.
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A BHP spokesperson declined to comment.
Anglo this week rejected a deal in which it would have split controlling stakes in South African platinum and iron ore companies to its shareholders before being acquired by BHP. The total value per share of the non-binding proposal was around £25.08, BHP said. Anglo chairman Stuart Chambers called the proposal “opportunistic” and said it did not value the company’s prospects.
A deal with Anglo would give BHP about 10% of global copper mine supply ahead of an expected shortage that many market watchers predict will send prices soaring. If successful, the transaction would mark a return to large-scale trading for BHP.
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