BHP Abandons Acquisition Plans for Anglo American

Mining company BHP has decided to halt its planned acquisition of competitor Anglo American, according to reports from the Financial Times. The deal, initially valued at £38 billion, has become unfeasible due to changing market conditions and strategic developments by Anglo American.

Anglo American’s restructuring efforts, which include exiting operations in coal, diamonds, and platinum, have significantly boosted its share price. This increase has rendered the acquisition cost prohibitive for BHP, as noted by the British business publication.

Compounding the situation, BHP has faced challenges on its own front, including a decline in its stock performance. The company’s market struggles stem from reduced demand for iron ore and ongoing issues in China’s real estate sector, which have weakened one of its key markets.