Australian mining giant BHP Group has pledged to invest significantly in South Africa’s economy as it seeks support for its ambitious £38.6 billion ($49.3 billion) bid to acquire Anglo American. Founded in South Africa more than a century ago, Anglo American remains one of the country’s largest employers.
Last week, London-based Anglo American rejected BHP’s latest offer, citing concerns about the complex structure of the proposed deal. The acquisition would require Anglo American to spin off two key South African units, Anglo American Platinum and Kumba Iron Ore. BHP’s strategy is to focus on copper and other materials expected to benefit from the global transition to green energy.
In response, BHP emphasized the potential benefits for South Africa. The company stated that Anglo American Platinum and Kumba Iron becoming independent companies listed on the Johannesburg Stock Exchange would positively impact the South African government and economy. Additionally, BHP made several commitments to invest in the country and support charitable initiatives.
“BHP believes that its proposal will contribute to South Africa and allow the benefits of South African mining to be shared with more South African stakeholders,” the company said in a statement.
The latest development in the takeover battle coincides with a significant political event in South Africa: the nation’s most crucial election since the end of apartheid 30 years ago. With high unemployment, lingering inequality, and poverty affecting the Black majority, the election could see the governing African National Congress lose its parliamentary majority for the first time.
BHP assured that if the takeover is successful, it would maintain current employment levels at Anglo American’s Johannesburg office and continue funding the company’s charitable commitments in South Africa. Furthermore, BHP promised to list its shares on the Johannesburg Stock Exchange and establish a mining center of excellence to support research, development, and the promotion of the country’s mining industry.
This strategic move by BHP underscores its commitment to fostering economic growth and development in South Africa while advancing its business objectives in the mining sector.
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