BHP will need to sweeten up offer to win over Anglo: Chris Hughes
BHP Group Ltd.'s ambitious £31.1 billion bid for Anglo American Plc heralds a seismic shift in natural resource deal-making, escalating from Glencore Plc's prior moves. With a focus on securing a dominant position in the copper market amidst a burgeoning demand for the metal, BHP's offer stands as a strategic coup. However, Anglo, trading at a discount to its intrinsic value, possesses ample leverage to negotiate for a more substantial premium, amidst potential antitrust hurdles.
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By Chris Hughes
Glencore Plc started it, and now BHP Group Ltd. is taking deal-making in natural resources up a gear. The Australian miner's £31.1 billion ($38.9 billion) approach for Anglo American Plc has something going for it. But it's no knockout — and Anglo is well placed to push for more.
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