Apr 25, 2024 - Business

Mining mega-merger is all about the energy transition

Copper prices
Data: Macrotrends; Chart: Axios Visuals

Australia's' BHP Group has offered to buy London-based mining giant Anglo American for nearly $39 billion in stock.

Why it matters: It would create the world's largest copper miner, at a time when copper demand is surging due to its use in energy transition technologies.

  • Copper prices are near an all-time high, and have risen more than 17% so far this year.

Details: The unsolicited offer is conditioned on Anglo spinning off its South African iron ore and platinum units to shareholders.

Go deeper, via Bloomberg: "Anglo American has long been viewed as a potential target among the largest miners, particularly because it owns big South American copper operations at a time when most of the industry is eager to add reserves and production. However, suitors have been put off by its complicated structure and mix of commodities, and especially its deep exposure to South Africa."

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