Anglo American plc has refused a takeover bid by Australia’s BHP Group, saying the proposal “significantly” undervalued the London-based miner and its future prospects.

BHP earlier offered to buy Anglo American, with a requirement for the latter to complete two separate demergers of its entire shareholdings in Anglo American Platinum Ltd and Kumba Iron Ore Ltd to Anglo American shareholders. The all-share offer and required demergers would be inter-conditional.

“The BHP proposal is opportunistic and fails to value Anglo American’s prospects, while significantly diluting the relative value upside participation of Anglo American’s shareholders relative to BHP’s shareholders,” Stuart Chambers, chairman of Anglo American, said in a statement released on April 26, 2024.

Chambers also called the proposed structure “highly unattractive,” which creates substantial uncertainty and execution risk borne almost entirely by Anglo American, its shareholders and its other stakeholders. 

“Anglo American is well-positioned to create significant value from its portfolio of high-quality assets that are well aligned with the energy transition and other major demand trends,” added the company official.

BHP made the reportedly multibillion-dollar offer on April 24, 2024.

Anglo American, which owns diamond mining giant De Beers Group, has a vast portfolio that spans diamonds, platinum, copper and iron ore, among other commodities. Rival miner BHP Group, meanwhile, produces iron ore, copper and higher-quality metallurgical coal, nickel and potash.