Key shareholders including BlackRock, have urged Anglo to continue merger talks with BHP Group regarding a proposed $49.18B deal.
A person familiar with the matter who spoke to Reuters on Saturday said that key shareholders like BlackRock (BLK.N) encouraged Anglo American (AAL.L), which opened a new tab, to continue talks with BHP Group (BHP.AX), which opened a new tab regarding its proposed mining merger that would be worth 38.6 billion pounds ($49.18 billion).
The world’s largest listed mining giant, BHP, received a one-week extension on Wednesday and now has until May 29 to submit a firm bid for Anglo American.
Should it fail to do so, the United Kingdom’s takeover regulations will compel it to withdraw from the deal for a minimum of six months.
BlackRock Urges Anglo To Continue Talks With BHP
According to the Financial Times, which was the first to report on the issue, BlackRock was one of a small group of investors who urged real conversations with BHP.
Ninety One and Sanlam Investments, two other key shareholders, also supported the decision to extend negotiations, despite reservations over a deal structure that requires Anglo to spin off its shares in its South African platinum and iron ore divisions, according to the newspaper.
However, both of these shareholders supported the decision to extend talks. Neither Ninety One nor Sanlam Investments responded to a Reuters request for comment.
According to the statistics provided by LSEG, the asset management firm BlackRock, which is based in the United States, holds a 9.6% stake in Anglo and is also a shareholder in BHP.
As reported by Reuters on Thursday, BHP will maintain its stance on the structure and value of its most recent takeover proposal.
Instead, the company will focus on addressing the concerns of its target regarding the execution risks over the next week. The Financial Times reported that individuals familiar with BHP’s approach expressed a preference for “smaller, creative structures to better share the risks.
“Nevertheless, according to those close to Anglo who were named by the publication, the structure requires modification, or BHP must pay a higher price.