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BHP (NYSE:BHP) has backtracked on remarks by its Chairman, Ken Mackenzie, about "moving on "from its failed $49 billion bid for Anglo American (OTCQX:AAUKF).
During BHP's annual shareholder meeting in Brisbane, MacKenzie had suggested that the Anglo American acquisition was a "nice to have, not a must-do" and indicated that BHP had put the deal behind them, reported The Guardian.
"We thought there was an opportunity here to create something unique and special… But Anglo American shareholders had a different view, and so they moved on. And quite frankly, so have we," he stated.
However, BHP issued a statement clarifying that these comments were not intended to be a formal withdrawal from pursuing the deal under U.K. takeover regulations.
Following a discussion with the U.K. Takeover Panel, BHP confirmed that the panel would not treat MacKenzie's remarks as an official "no offer" statement, meaning the door remains open for a potential future bid.
Initially proposed in April, BHP's bid for Anglo American sought access to Anglo's lucrative copper assets in South America – as the price for the metal crucial in the green energy transition surged toward its yearly high in May.
Despite the strategic fit, the deal faced hurdles, particularly concerning Anglo's South African assets. BHP hesitated to retain those due to regulatory complexities and economic risks associated with South Africa's business environment.
Unable to secure the deal, BHP turned to its key assets, looking to expand its Olympic Dam operation in South Australia and the Escondida mine in Chile; however, their domestic operations face challenges that could drive higher costs.
Australia's mining industry has been grappling with high labor expenses as worker shortages and competition drive wages upward. New labor laws, including the "Same Job, Same Pay" initiative, have raised concerns over their potential to increase operational costs.
At the Brisbane meeting, labor issues were a key focus, with hundreds of workers protesting BHP's stance on the new legislation and its effect on profitability.
Still, the company managed to increase its footprint in South America. In July, it announced a bid for Filo Corp (OTCQX:FLMMF). Through a 50-50 joint venture with Lundin Mining (OTC:LUNMF), BHP will spend $2 billion to acquire a 50% stake in the promising Filo del Sol copper project on the Chilean-Argentine border and a 50% stake in Lundin's Josemaria project.
The mandatory standstill on a new bid for Anglo American expires on November 29.
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