BlackRock encourages Anglo to extend talks with BHP
Anglo American has been encouraged by major shareholders, including BlackRock, to continue discussions with BHP Group.
Anglo American has been encouraged by major shareholders including BlackRock to continue talks with BHP Group over its proposed 38.6 billion pound ($49.18 billion) mining merger, sources with knowledge of the matter told Reuters.
BHP, the world’s largest publicly traded mining group, has until May 29 to make a firm bid for Anglo American or it will have to leave for at least six months under Britain’s takeover rules.
The Financial Times, which first reported the news, said BlackRock, the world’s largest asset management company, was one of a handful of investors encouraging meaningful negotiations with BHP. The paper added that two other major shareholders, Ninety One and Sanlam Investments, also supported the decision to extend talks despite concerns about a deal structure that would require Anglo to separate its stakes in South African platinum and iron ore units.
According to LSEG data, US-based asset manager BlackRock owns a 9.6 percent stake in Anglo and is also a shareholder of BHP.