CRU: Size matters – BHP’s bid to be the global mining behemoth

If successful in its overtures to Anglo American, BHP will create the world’s largest diversified miner by a country mile. The rationale for this merger is scale and in mining, size matters. 

BHP has put forward an unsolicited, conditional offer to acquire Anglo American, potentially creating a mega mining company. In what would be one of the largest value mining deals ever, BHP has made an all-share offer valuing Anglo American at £31.1 billion (USD$38.8 billion). Both companies are significant producers of copper, iron ore, metallurgical coal, and nickel, while both are also developing large projects in the fertilizer industry.