BHP's Revised Proposal for Combination with Anglo American

BHP Group Ltd (ASX: $BHP) has extended the deadline for its revised proposal for a combination with Anglo American plc (Anglo American) to 29 May 2024. The proposal includes a range of socio-economic measures intended to address Anglo American's concerns regarding the proposed transaction structure.

BHP's Proposed Socio-Economic Initiatives

BHP has proposed a range of socio-economic measures to address Anglo American's concerns, aiming to support South African regulatory approvals. The proposed measures include sharing in the costs of increased South African employee ownership, establishing a Mining Centre of Excellence, maintaining current employment levels, funding charitable commitments, supporting local procurement, and ensuring continued access for South African investors through the listing of BHP on the Johannesburg Stock Exchange.

Outlook and Next Steps

BHP's extended deadline for the proposal provides an opportunity for further engagement with Anglo American. The company believes that the proposed measures offer substantial risk protection for Anglo American shareholders and supplement significant value uplift. BHP aims to contribute to South Africa and share the benefits of South African mining with more stakeholders. However, the announcement emphasizes that it does not amount to a firm intention to make an offer, and there is no certainty that an offer will be made. BHP's focus on addressing concerns and proposing initiatives reflects its commitment to the potential combination with Anglo American.