In a significant development for the global mining sector, Australian mining giant BHP has officially stepped back from pursuing a merger with Anglo American, ending a brief but high-stakes attempt to derail Anglo’s impending $50bn combination with Teck Resources.
Over recent days, BHP approached Anglo American’s board with a cash-and-shares proposal that, if accepted, could have complicated the UK miner’s strategic merger with Canada’s Teck. The move reignited speculation about a new wave of consolidation in the commodities sector, particularly as major companies scramble to secure copper assets crucial for the global energy transition.
But on Monday, BHP confirmed it had abandoned the idea after Anglo American rejected its advances for the second time in 18 months.
“BHP confirms it is no longer considering a combination with Anglo American,” the company said, noting that while the deal had “strong strategic merits,” it remained confident in its own long-term growth strategy.
Anglo American declined to comment on the approach.
A Short-Lived Bid With High Stakes
Industry analysts described BHP’s overture as a final attempt to secure Anglo’s prized South American copper operations—assets the Australian miner has long coveted. Glyn Lawcock of Barrenjoey called it “a last roll of the dice”, especially with Anglo’s shareholders scheduled to vote on the Teck deal on December 9.
However, BHP’s quick retreat suggested it had no interest in launching a bidding war or pursuing an aggressive takeover, a stance that surprised some in the banking sector.
A senior banker noted, “I thought they’d come back and finish it. To come back and not finish it is quite amazing.”
Strategic Repositioning in a Changing Market
The Anglo–Teck merger, announced earlier this year, has already reshaped expectations across the mining industry. The two companies operate neighboring copper mines in Chile, and their merger would create one of the world’s top five copper producers at a time when demand for the metal is soaring due to renewable energy and electrification projects.
BHP, Rio Tinto, and Glencore—three of the world’s largest miners—have all been reassessing their strategies in light of this shift.
Last year, BHP made multiple bids for Anglo American, but its proposals were rejected as “highly complex and unattractive”, especially because they required Anglo to break up its operations by divesting coal, diamonds, and platinum assets.
Since then, Anglo has sold its platinum business, but a $3.8bn deal to offload its coal division collapsed in August after a mine explosion.
What’s Next?
BHP’s decision to withdraw means Anglo American is now clear to proceed with its Teck merger vote as scheduled. The move also signals that BHP—while still interested in copper expansion—is choosing to focus on organic growth rather than contested takeovers.
As consolidation pressures continue to grow across the mining industry, all eyes will remain on the December vote and the broader strategic realignments expected in the months ahead.
