Copper Is A Hot Commodity: Bidding War for Anglo American May Emerge After BHP's 'Low Ball' Offer — 'Let The Games Begin'
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 25 2024
0mins
Should l Buy BHP?
Source: Business Insider
- BHP Group's Bid for Anglo American: BHP Group made a nearly $40 billion bid for Anglo American, aiming to acquire the company due to the global demand for copper assets.
- Rival Bids Expected: Other diversified miners are likely to make rival bids for Anglo American, driven by the increasing need for copper in clean energy technologies.
- Challenges with BHP's Offer: Analysts suggest that BHP's bid may undervalue Anglo American, especially considering operational issues and market challenges faced by the latter.
- Potential Bidders: Companies like Glencore, Vale, and Rio Tinto are seen as potential bidders for Anglo American due to the benefits of combining their respective assets.
- Interest in Copper Assets: The scramble for copper assets is evident, with even gold mining companies like Newmont Corp. and Barrick Gold Corp. expanding into copper acquisitions.
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Analyst Views on BHP
Wall Street analysts forecast BHP stock price to fall
3 Analyst Rating
1 Buy
1 Hold
1 Sell
Hold
Current: 72.760
Low
49.50
Averages
56.50
High
68.00
Current: 72.760
Low
49.50
Averages
56.50
High
68.00
About BHP
BHP Group Limited is an Australia-based resources company. The Company is a producer of commodities, including iron ore, copper, nickel, potash and metallurgical (steelmaking) coal. It is focused on offering a range of resources, which provides copper for renewable energy; nickel for electric vehicles; potash for sustainable farming, and iron ore and metallurgical coal for the steel needed for global infrastructure and the energy transition. Its segments include Copper, Iron Ore, and Coal. Its Copper segment is engaged in mining of copper, silver, zinc, molybdenum, uranium, and gold. Its Iron Ore segment is engaged in mining of iron ore. Its Coal segment is engaged in mining of metallurgical coal and energy coal. The Company is also focused on operating Olympic Dam, Prominent Hill, and Carrapateena underground copper-gold mines in South Australia. Its operations are situated in Australia, Europe, China, Japan, India, South Korea, rest of Asia, North America, South America, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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