BHP Group, the world’s largest mining company, has proposed acquiring rival Anglo American, in a deal that has the potential to shake up the industry at a time when demand for copper is rising.
BHP said on Thursday it had approached Anglo with an offer worth 31.1 billion pounds, or $39 billion, in what would be one of the industry’s biggest deals in years. If successful, the acquisition would create the world’s largest copper miner at a time of growing global hunger for the metal, which is essential for the transition to green energy.
Anglo confirmed it had received an “unsolicited, non-binding and highly conditional combination proposal from BHP” and that its board was reviewing the offer with its advisers.
The need for copper and other raw materials has increased as the world moves away from fossil fuels and demand increases for clean energy technologies such as wind turbines, electric vehicle batteries and solar panels. In the United States, President Biden’s signature climate and energy law, the Inflation Reduction Act, contains hundreds of billions of dollars in tax credits to help companies switch to low-carbon energy sources.