Australian miner BHP Group Ltd has abandoned its proposed multibillion-dollar merger with rival Anglo American after more than a month of back-and-forth discussions.

BHP, which is reportedly eyeing Anglo American’s copper assets, said it will no longer pursue Anglo American after the latter rejected its third proposal on May 22. Anglo American also denied BHP’s request to extend talks.

Mike Henry, CEO of BHP, said the company was unable to reach an agreement with Anglo American on regulatory risks and costs in South Africa. He added, “We were not able to access from Anglo American key information required to formulate measures to address the excess risk they perceive.” 

The deal, which would have been valued at £38.6 billion (approximately US$49.14 billion), “was the most effective structure to deliver value for Anglo American shareholders,” maintained Henry.

Anglo American Chairman Stuart Chambers, meanwhile, said the group is strategically positioned to provide value for its shareholders. He noted, “Our shareholders will benefit from value transparency and undiluted exposure to a simpler portfolio of world class assets, consistently stronger operational performance, and highly attractive growth in copper, premium iron ore and crop nutrients.” 

Anglo American earlier termed BHP’s third proposal as “unsolicited” and “highly conditional,” and included the same “highly complex structure” as the ones it previously declined on April 26 and May 13, respectively.

BHP sought to have a May 29 deadline to make a binding offer extended for further discussions, but this was likewise rejected.

The proposal involved an all-share offer for Anglo American by BHP, with a requirement for Anglo American to complete two separate demergers of its entire shareholdings in Anglo American Platinum Ltd and Kumba Iron Ore Ltd to Anglo American’s shareholders. The all-share offer and required demergers would have been inter-conditional.

Chambers earlier said Anglo American had considered BHP’s proposal carefully and concluded it does not meet expectations of value delivered to Anglo American’s shareholders. 

Following its third rejection of BHP’s takeover bid, Anglo American said it will divest or demerge its diamond unit - De Beers Group - as part of its strategy to accelerate growth.