BHP/ Anglo American30 Apr 2024 22:36
a few thoughts.
a) bhp has not won hearts and minds on this at all- most of its institutions cannot see the merits / logic of this pick and mix approach - bhp has not done its home work on the merits of this at all.
b) why on earth does bhp want debeers? diamonds have had it -they are now being manufactured cheaply- the whole industry is in a slow death
c) reputational risk - bhp has an outstanding track record of investment returns. anglo does not, is cash poor, has some major capex to do, will dilute bhp earnings. bhp is taking a significant risk with its reputation. this is not like bhp/ oz minerals.
d) bhp wants copper assets, we have been informed - ok so why not anto***asta, first quantum minerals etc
e) other than modest corporate hq overlap, where are the synergies with this deal?
f) anglo am board are not going to approve without getting an over the top offer, which bhp if it has any sense is not going to offer- so who is pulling whose plonker here?
message to bhp; its not too late, withdraw honourably, deal was never there anyway, and it will be forgotten about in a few months. bhp does not need anglo am myriad of problems