Anglo American: Latest takeover attempt for firm behind £7bn Yorkshire mine project abandoned

BHP confirmed it had held “preliminary discussions” with Anglo American about a possible bid, but said late on Sunday it was now “no longer considering a combination of the two companies”.

The FTSE 100 firm added: “Whilst BHP continues to believe that a combination with Anglo American would have had strong strategic merits and created significant value for all stakeholders, BHP is confident in the highly compelling potential of its own organic growth strategy.”

It is thought that Anglo had rejected the latest approach from BHP, which would have thwarted the agreed mega-merger between Anglo and Canadian rival Teck Resources.

Anglo is just weeks away from a shareholder vote on the Teck tie-up, which will create one of the world’s largest copper producers with a combined value of close to £40 billion.

The Teck deal will see Anglo move its headquarters away from London, with the combined group to be led out of Vancouver in Canada, although it will retain corporate offices in the UK and Johannesburg, South Africa.

The merged firm – to be called Anglo Teck – will keep its primary listing on the London Stock Exchange (LSE), with secondary listings in Toronto, South Africa and New York.

The deal is billed as a “merger of equals”, though Anglo shareholders will own about 62.4 per cent of the merged company and Teck the remaining 37.6 per cent.

In September, Anglo American confirmed the planned development of the Woodsmith project in North Yorkshire will continue under the new merged organisation.

A statement at the time said: “Anglo Teck will continue to progress the development of the Woodsmith project in the UK with its ongoing potential to be a generational asset in crop nutrients.

"Full development remains subject to meeting stringent investment criteria for risk-adjusted value, including syndication to one or more investment/strategic partners.”

The Woodsmith project involves the creation of a new mining site near Sneaton to the south of Whitby and a 23 mile tunnel that will transport a naturally occurring mineral, polyhalite, to new processing and shipping facilities on Teesside.

It is intended the product will be sold as a fertiliser suitable for organic use that can boost crop yields and aid more sustainable farming.

In May 2024, Anglo American announced a shock decision to save costs by slowing work on the scheme, despite nearly 18 miles of the 23-mile tunnel already being built, with a feasibility study into the project ordered.

In July this year, Anglo American said “project ramp up” for Woodsmith was expected from 2027.

BHP’s previous near-£39 billion proposal for Anglo ended in May last year as the pair were unable to reach an agreement over specific issues.

A deal between the two companies would have created the biggest copper miner in the world, with 10 per cent of global output.

Anglo’s vast reserves of copper are a key driver of the interest in the business, as the mineral is an important building block for low-carbon technologies such as solar farms and electric cars.