By Christian Moess Laursen


Shares in Anglo American rose as much as 4% following a press report that Glencore is considering a bid for its London-based mining peer, a week after a $38.8 billion takeover proposal by BHP was rejected.

At 0845 GMT, shares were up 3.1% at 2,743.50 pence. Since the takeover approach by BHP, Anglo American shares have risen 25%.

According to a report on Friday by Reuters, Glencore has had internal, preliminary discussions on how the Switzerland-based mining giant could bid for Anglo American.

"We do not comment on market rumor or speculation," a Glencore spokesperson told Dow Jones Newswires.

Anglo's prized copper assets in South America are partly what draws interest given demand is expected to rise due to its use in electric vehicles and power grids as the world's pivots towards greener energy.

Bidders would also capitalize on a current low valuation as Anglo struggled with production cuts and operational headwinds in diamond, platinum and nickel markets. Its market capitalization has diminished from around $72 billion in April 2022 to around $34 billion currently.

Last Friday, Anglo rejected BHP's bid, in part due to the structure of the deal, which included the demerger of Anglo's South African assets, Amplats and Kumba Iron Ore.

Should Glencore propose an offer, it could have an easier time than BHP since it already has some assets in South Africa and could be open to take Amplats and Kumba into its portfolio, RBC Capital Markets analyst Marina Calero writes in a research note.


Write to Christian Moess Laursen at christian.moess@wsj.com


(END) Dow Jones Newswires

05-03-24 0522ET