Home / Business and Economy / BHP Doubles Down on Copper as Anglo-Teck Merger Looms
BHP Doubles Down on Copper as Anglo-Teck Merger Looms
10 Sep
Summary
- BHP unlikely to make a move on Anglo or Teck merger
- BHP spent $2 billion for stake in Canadian copper projects
- Anglo's share price up 20% since BHP's failed $49 billion bid
In the midst of a leadership transition, global mining giant BHP is doubling down on expanding its own copper assets rather than pursuing a potential takeover of the planned $53 billion merger between Anglo American and Teck Resources.
Last month, BHP spent $2 billion to acquire a stake in two Argentinian copper projects owned by Canada's Lundin. This strategic move comes just over a year after BHP's $49 billion bid for Anglo American was rebuffed three times. Investors say BHP's focus on internal growth projects suggests it is unlikely to make a play for either Anglo or Teck.
The Anglo-Teck merger, announced this week, marks the second-biggest tie-up in the mining sector. It will create a new global copper-focused heavyweight. Meanwhile, Anglo's share price has jumped 20% since BHP's failed bid last April, making it a tougher target.
BHP's CEO has indicated that the company sees better value in smaller, targeted projects than in large-scale acquisitions in the current market conditions. This approach appears to be consistent with BHP's strategy as it navigates a period of leadership change.
