Anglo American: Game of Bids Begins

The Financial Times reports on the developing story of the unsolicited bid of Australia-listed BHP on London-listed mining conglomerate Anglo American, which includes the diamond mining branch De Beers, naming potential suitors. BHP's bid was rejected earlier this week by Anglo's board but says it is safe to assume BHP might counter with an improved proposal, while other candidates may well offer a competing bid. In the running, according to FT's analysis could be Rio Tinto (UK-Australia), Glencore (UK), Barrick Gold (USA), Vale (Brazil), Vedanta Resources (India) or Zijing Mining (China), with the first two names considered the most suitable matches with Anglo's profile. 

Glencore

+ keen to acquire existing over developing new assets

+ London-listed facilitates potential transaction

- deal size could prove difficult

Rio Tinto

+ large enough for the size of the deal

+ looking to diversify and expand (especially copper) portfolio

+ experience in diamond business, presence in South Africa

- exited coal business in 2018

Barrick Gold

+ South African legacy

+ interested to expand portfolio (copper)

- a tall order?

Vale

+ former Anglo chief Cutifani chairs Vale's base metal division

+ ready for M&A

- not suitable for a full deal

Others

+ China's state-backed miner Zijin or other Chinese players may look at individual assets, in line with Beijing's strategic goals

+ Indian players might have similar interests in (parts of) Anglo American

_{photo credit: Anglo American}