Anglo American rejects BHP’s plea for merger extension

UK mining giant Anglo American has rejected a plea from its rival BHP to extend the deadline for a proposed £39bn merger, putting the mega-merger in jeopardy.

BHP attempted to ease concerns about its plans for Anglo American’s business in South Africa ahead of elections in the country by making commitments, including job security for employees. However, Anglo’s decision means that unless BHP changes its offer before 17:00 on Wednesday, the merger may not go through.

The two companies have been in negotiations since Anglo American rejected BHP’s initial takeover approach at the end of April. Despite BHP making several proposals to address Anglo’s concerns, including maintaining staff levels and sharing the cost of increased South African employee ownership, Anglo still found the offer unattractive.

Speaking to the BBC, Ben Davis, head of mining at analyst Liberium Capital, expressed disappointment at the prospect of another UK company being acquired by an overseas business. He stated that losing Anglo American from the London Stock Exchange would be a significant loss.

The future of the proposed merger remains uncertain as the deadline approaches, with both companies at a standstill over the terms of the deal.