Elliott Management has amassed a stake of approximately $1 billion in miner Anglo American over recent months. Elliott Advisors, the activist’s U.K. division, stated in a regulatory filing on Friday that it holds a 2.5% interest in Anglo American. This stake, comprised mainly of cash-settled derivatives, is valued at around £891 million, roughly equivalent to $1.1 billion. Following this disclosure, Anglo American’s shares surged by as much as 5% on Friday.
This development coincides with heightened interest in Anglo American from BHP, a global mining behemoth with a proposed takeover bid valued at $43 billion. However, Anglo American rebuffed BHP’s $39 billion offer on Friday, asserting that it “significantly undervalues” the company and its future prospects.
Anglo American, a major copper producer globally, refrained from commenting further. Copper, crucial for the shift towards clean energy, is found to be extensively used in electric vehicles and wind turbine manufacturing.
Stuart Chambers, Chairman of Anglo American, emphasized in the rejection that copper constitutes 30% of the company’s total production. He pointed out the value potential in Anglo American’s strategic growth plans, particularly in copper and other promising sectors.
Elliott’s involvement is notable given its history with mining firms, including BHP, in 2017. At that time, Elliott advocated for the spinoff of BHP’s petroleum divisions and urged a relocation of its primary listing from Australia to London.
While initially resisting, BHP eventually divested its oil business in 2021. As of 2023, the Australian miner boasts a market capitalization of $145 billion and mining sales totaling $53.8 billion.Top of Form
