BHP ends pursuit of Anglo American deal
Miner says it will focus on organic growth after talks halted
BHP Group announced it will not pursue a combination with Anglo American after preliminary talks with Anglo’s board, saying it will not make another approach and will instead focus on its organic growth strategy. The miner said a tie-up retained “strong strategic merits,” particularly through Anglo’s copper assets, but concluded the timing, complexity and its investment priorities no longer supported a takeover.
The decision ends a series of approaches after BHP’s failed $49 billion bid for Anglo last year. Reports that BHP had revived interest came shortly before Anglo shareholders are set to vote on a proposed merger with Canada’s Teck Resources worth more than $60 billion. BHP said it remains confident in the value of its existing project pipeline and will prioritize lower-risk, high-return developments—especially in copper and across South America—while reserving M&A for opportunities that meet strict financial and operational criteria.
Executives framed the move as a strategic choice to emphasize disciplined, organic expansion rather than pursuing large-scale acquisitions amid volatile commodity prices and rising capital costs. By stepping back, BHP reduces immediate takeover pressure on Anglo, which has been restructuring its business and managing interest from potential suitors.
Analysts observed the withdrawal reflects broader industry caution: major miners are increasingly selective about deals and focused on delivering value through internal projects. Some noted the earlier approaches looked “messy” for BHP, while others said the company was right to avoid the complexities and integration risks a large takeover would entail.
For investors, the spotlight shifts to BHP’s ability to convert its project pipeline into tangible returns and to match any potential upside a merger might have provided without taking on the associated execution and financing risks. The move also leaves Anglo and Teck’s proposed tie-up—aimed at creating a copper-focused global player—clearer of rival interest from BHP, at least for now.
BHP’s statement framed the choice as confidence in its own strategy and a commitment to disciplined capital allocation, signalling a preference for measured growth through project development and selective transactions rather than pursuing headline-grabbing deals. The industry will watch whether that approach delivers the scale and returns shareholders expected from a potential consolidation in the copper sector.
