- Bhp Group Plc
- 17 May 2024 17:23:15
Source: Sharecast
Bloomberg cited people familiar with the matter as saying that executives have already begun conversations with key stakeholders, focusing on explaining the detail of the existing $39bn proposal - currently back on the drawing board after it was rapidly rejected by its target - and its benefits.
BHP’s proposal includes a plan for Anglo to spin off its Johannesburg-listed platinum and iron ore units before an eventual takeover of the remaining assets.
According to Bloomberg, BHP’s team aims to engage with President Cyril Ramaphosa’s administration among other key stakeholders, laying out the exact detail of the multi-stage deal, plus the benefits of returning control of Amplats and Kumba to South Africa, with more of their cash flow likely to stay close to home and a larger free float on the Johannesburg Stock Exchange.
South Africa’s state pension fund controls 8.4% of Anglo’s shares - only BlackRock owns more.
Mining Minister Gwede Mantashe told Bloomberg on Wednesday that BHP had not yet contacted his department to explain its plans.
Also the ANC’s national chairperson, he has said that he "wouldn’t support" the deal as currently outlined. The minister has criticized BHP for divesting its South African assets in 2015 through the creation of South 32, only 14 years after its merger with Billiton.