BHP Group, the world’s largest mining company, has proposed a takeover of its rival Anglo American, in a deal that has the potential to shake up the industry at a time when demand for copper is soaring.
BHP said on Thursday that it had approached Anglo with a bid valued at 31.1 billion pounds, or $39 billion, in what would be one of the most significant deals in the industry in years. If successful, the acquisition would create the world’s largest miner of copper at a time of growing global hunger for the metal, which is essential to the green-energy transition.
Anglo confirmed that it had received an “unsolicited, nonbinding and highly conditional combination proposal from BHP” and that its board was reviewing the offer with its advisers.
The need for copper and other commodities has grown as the world shifts away from fossil fuels and demand rises for clean energy technologies like 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.