UK-listed miner Anglo American is evaluating a takeover bid from Australia-listed miner BHP, Kallanish notes. While Anglo American did not disclose the price of the offer, it was reported that BHP may value Anglo American at £31.1 billion ($38.9 billion) or £25.08 per Anglo share.

Anglo American confirms in a statement that is has received an unsolicited, non-binding and highly conditional combination proposal from BHP. The attempted take-over is focussed on Anglo's copper assets.

The proposal comprises an all-share offer for Anglo American by BHP. It would be preceded by separate demergers by Anglo American of its entire shareholdings in Anglo American Platinum and Kumba Iron Ore to Anglo American shareholders. The two parts of the proposal would be inter-conditional.

"The board is currently reviewing this proposal with its advisers," Anglo American says. However, it also notes there can be no certainty that any offer will be made.

Major Anglo shareholders Legal & General and Abrdn have both come out publicly against the offer from BHP.

Anglo American has a 69.7% share in Kumba Iron Ore in South Africa. It also controls the Minas-Rio iron ore operation in Brazil.

The firm's latest production report showed that its iron ore production was flat at 15.1 million tonnes in the first quarter. The firm notes that a strong performance from Minas-Rio, which was up 4%, was offset by a planned decrease at Kumba to align with third-party logistics constraints. 

The firm's iron ore production guidance for 2024 is unchanged at 58-62mt, of which 35-37mt comes from Kumba, while 23-25mt comes from Minas-Rio.