Ben Cleary, Portfolio Manager at Tribeca’s Global Natural Resources Strategy, views the potential merger of BHP and Anglo America as a significant opportunity for BHP to bolster its copper exposure and unlock long-term gains.
Despite Anglo’s recent hurdles and the bid’s premium valuation at £25.08 per share, Cleary believes that BHP could feasibly increase its offer. This is due to Anglo’s copper assets that would make BHP the largest producer of copper globally, a commodity crucial for future decarbonization and electrification.
Additionally, considering Anglo’s previous trading price of £40 per share prior to their poor earnings report at the start of this year, Cleary suggests that BHP offering £30 per share could still result in a successful deal.
Learn more about the deal and copper’s important place in it here: AFR Article