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Anglo American has rejected a new and improved takeover proposal from BHP, the mining giant has confirmed.
In a statement released on Monday, BHP confirmed that it had made a revised proposal to the Anglo board on 7 May, but the proposal was rejected on Monday.
"The latest proposal from BHP again fails to recognise the value inherent in Anglo American," Anglo chair Stuart Chambers said in a statement.
"Anglo American shareholders are well positioned to benefit from increasing demand from future enabling products while the increasing capital intensity to bring greenfield supply online makes proven assets with world class resource endowments ever more attractive."
BHP's revised offer values Anglo American at £34 billion (R782 billion), up from £31.1 billion previously.
In terms of the proposal, Anglo shareholders would receive a larger stake in BHP, upping the aggregate ownership in the combined group to 16.6% from 14.8% in the first proposal.
The proposed transaction still comprises an all-share offer for Anglo American, subject to the pro-rata distribution by Anglo of its entire shareholdings in Anglo Platinum and Kumba Iron Ore to shareholders immediately before completion of the scheme of arrangement.
"BHP put forward a revised proposal to the Anglo American Board that we strongly believe would be a win-win for BHP and Anglo American shareholders. We are disappointed that this second proposal has been rejected," BHP CEO Mike Henry said in a statement.
The group said it was further disappointed that the Anglo board chose not to engage with BHP with respect to the revised proposal and the improved terms. "BHP continues to believe that a combination of the two businesses would deliver significant value for all shareholders," it said.
Update: This article has been updated with a comments made in a statement from Anglo American.
