Anglo American Miner Faces Takeover Interest As Elliott Takes $1 Billion Stake

(CTN News) – Elliott Management’s stake in Anglo American has increased in recent months, according to a person familiar with the matter.

As part of its U.K. campaign, the activist’s investment arm, Elliott Advisors, confirmed in a regulatory filing after publication that it held over 2.5% of an equity interest in Anglo American in a regulatory filing Friday. It is estimated that the position is worth around £891 million, or roughly $1.1 billion.

The position is composed of cash-settled derivatives. The shares of Anglo American rallied by as much as 5% on Friday in response to the news.

There has been news of an activist’s position from a London-based miner which generates $43 billion in revenue and is under threat of being taken over by BHP, a mining giant with operations all over the world.

BHP’s $39 billion takeover offer was rejected by Anglo American Corp. on Friday morning, as it claimed the BHP offer “significantly undervalues Anglo American Corp. and its future prospects.”.

Despite Anglo American’s request for comment, it declined to do so. In the world, there are a few companies that can compete with the company when it comes to production of copper.

According to BHP’s bid, the South African subsidiaries of Anglo American would have been spun off as part of the bid. In addition to being used in the manufacture of electric vehicles and wind turbines, the metals also play a critical role in the worldwide transition to clean energy.

It was noted by the Chairman of Anglo American, Stuart Chambers, in the company’s rejection that copper accounted for 30% of the company’s total production. Therefore, with the benefit of well-sequenced and value-adding growth options in copper and other structurally attractive products, the company’s shareholders will benefit greatly in the months and years to come.

Elliott is a mining industry veteran, having worked for BHP in 2017 as well as suitor BHP in the past. In an activist letter to the company’s board, the activist called for its petroleum businesses to be spun off and for the company to move its main listing to London from Australia.

BHP initially rejected those proposals, and it exited the oil business in 2021 after initially rejecting them. This is one of the largest mining companies in the world, with a market cap of $145 billion and a mining revenue of $53.8 billion projected for the year 2023.

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