Miner BHP Group walked away from its $49 billion plan to take over rival Anglo American on Wednesday after its last-ditch request for more time was rejected by the London-listed company, ending its six-week pursuit for the time being.
Here is a timeline of the events that unfolded over the last six weeks.
* Feb 22: Anglo American announces a review of its asset safter a 94% plunge in annual profit and writedowns at its diamond and nickel operations.
* April 25: BHP Group discloses a bid of $39 billion for Anglo American, made on April 16, and proposes to spin off its London-listed target’s iron ore and platinum assets in South Africa.
* April 25: The South African government announces scrutiny of BHP’s proposed deal to buy Anglo American.
* April 26: Anglo American rejects BHP’s first $39 billion takeover proposal, citing significant undervaluation of the company and its prospects.
* April 27: BHP considers making an improved offer for Anglo American after its initial proposal is rejected.
* April 29: South Africa says BHP Group’s proposed bid for Anglo American is “normal market activity”.
* May 2: Commodities group Glencore is studying an approach for Anglo American that could potentially spark a bidding war, two sources tell Reuters.
* May 7: BHP’s plan to divest Anglo American’s South African assets is revealed to be key to its proposed takeover strategy, investors briefed on the miner’s thinking say.
* May 9: Japanese steelmakers raise concerns about BHP Group’s potential dominance in the global supply of coking coal if it acquires Anglo American.
* May 10: Rio Tinto had considered making an offer for Anglo American, the Australian Financial Review reports.
* May 13: Anglo American rejects a raised takeover proposal of $42.67 billion from BHP Group.
* May 14: Anglo American says it plans to refocus on copper and offload less profitable coal, nickel, diamond and platinum assets to fend off BHP’s takeover bid. CEO says BHP bid forced him to accelerate plans for a spin-off of its South African platinum assets.
* May 14: BHP Chief Executive Mike Henry urges Anglo American investors to consider the merits of his company’s bid.
* May 16: Anglo American suspends global hiring as it plans to simplify its operations and avert BHP’s takeover bid.
* May 22: Anglo agrees to a week-long extension for BHP to make a binding takeover offer, after rejecting a third proposal that values it at $49 billion.
* May 23: BHP stands firm on its latest takeover proposal for Anglo American despite the rejection, plans to address execution risk concerns, sources say.
* May 25: Key shareholders, including BlackRock, encourage Anglo to continue engaging in talks with BHP over the proposed merger.
* May 29: BHP Group abandons its $49 billion plan to takeover Anglo American after a last-ditch request for more time is rejected.
WHAT’S NEXT?
Analysts at JPMorgan and RBC Capital Markets say there are a few areas to focus on moving forward:
* The delivery of Anglo’s standalone or defence strategy to refocus on copper and spin off or sell its less profitable coal, nickel, diamond and platinum businesses.
* The potential for other suitors to assess their own potential interest in Anglo. Analysts at RBC Capital Markets list out Glencore, Rio Tinto and Vale as the most likely candidates.
* A partial or total sale of Anglo’s copper segment, which JP Morgan analysts estimate to be worth about $27 billion, or about 17.25 pounds per share. RBC Capital analysts said that given the quality of the copper portfolio, they would not discount the probability of a Chinese state entity getting involved.
(SOURCE: Reuters stories)
(Compiled by Echha Jain and Yadarisa Shabong in Bengaluru; Editing by Arpan Varghese and Pooja Desai)
