BHP terminates acquisition negotiations with Anglo American: strategic merger dream shattered

Mining giant BHP officially announced the termination of merger negotiations with Anglo American (. While this deal indeed had strategic highlights — potentially creating significant value for shareholders — it ultimately fell through.

Interestingly, BHP emphasizes its confidence in its organic growth strategy. This is a typical “graceful exit” statement: it's not that we don't want to merge, but rather that we are also doing quite well on our own.

However, the script is not completely finished. If the following situations occur, there is still a chance for the transaction:

• The board of directors of Anglo-American Resources suddenly agreed
• There are strong third-party bidders.
• Anglo American Resources proposed a reverse takeover or exemption plan.
• The UK merger regulatory authority determines that a significant change has occurred.

Stock Price Reaction:

• BHP closed up 0.62%, at 40.62 AUD
• UK and US resources closed down 0.95%, at 2710 pence

From the stock price perspective, the market is quite receptive to this decision. Large mergers in the mining sector have always stirred market nerves, and this failure is a test for both companies.