Australian mining behemoth BHP has announced a proposed $38.8 billion takeover bid for its British counterpart Anglo American, in a bid to reinforce its dominance in the copper industry.

This could be the largest mining deal in decades, as both companies are navigating a transition away from traditional revenue streams like gas and coal, focusing more on mining metals and critical minerals.

In a statement to the London Stock Exchange, BHP confirmed its interest in Anglo American's "world class copper assets," which include operations in Peru and Chile.

This acquisition, if successful, would make BHP occupy around 10% of global copper supply. Market watchers expected this would send the metal price soaring.

BHP's proposed offer is contingent on Anglo American spinning off its platinum and iron ore holdings in South Africa.

Last year, BHP bought copper producer OZ Minerals Ltd. for about $6.4 billion.

BHP produced about 1.2 million tonnes of copper in 2023 on an equity basis, and Anglo's output reached 826,000 tonnes.

In addition to copper, Anglo is also engaged in nickel, coking coal and Brazilian iron ore, as well as diamond business. However, the company has suffered a series of setbacks as prices of some key products plunged.

Anglo said its board was reviewing the proposal. "There can be no certainty that any offer will be made nor as to the terms on which any such offer might be made," it said in a statement.

BHP has until May 22 to make a formal offer.

(Writing by Alex Guo  Editing by Harry Huo)
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