British mining giant Anglo American has propelled the FTSE 100 to a new record high after announcing it is “reviewing” a takeover proposal from its larger Australian competitor, BHP.
Anglo American’s shares soared by as much as 13.6%, increasing its market value by £3.7 billion, and driving the UK’s premier stock index up by as much as 0.7% to a new peak of 8,098.14.
BHP’s bid values the London-listed mining firm, owner of the De Beers diamond brand, at £31.1 billion. However, today’s surge in share price suggests the company’s valuation could be nearly £34 billion.
The proposed acquisition, which has a deadline of May 22, would establish the world’s largest copper miner, controlling approximately 10% of the global supply.
Anglo American’s prized copper assets, including significant operations in Chile and Peru, are believed to be a major factor in BHP’s interest.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, commented that the deal might “send a fresh chill through the City of London,” expressing concerns that this could be just the beginning of a trend of major companies leaving the exchange.
