BHP Ends Pursuit of Anglo American as Anglo Advances Teck Resources Merger

BHP Group Ltd (ASX:BHP), the world’s biggest mining company, announced on Monday that it has officially withdrawn its interest in acquiring Anglo American PLC (LON:AAL). The decision comes as Anglo moves forward with its planned merger with Canada’s Teck Resources, a deal positioned to create one of the most influential copper producers globally.

According to BHP, the company held initial discussions with Anglo American’s board but ultimately chose not to continue pursuing a takeover. While BHP did not provide a detailed explanation for stepping back, industry watchers note that the timing coincides closely with Anglo’s commitment to a transformative merger that strengthens its copper portfolio. Copper demand has surged due to its essential role in renewable energy, electric vehicles, and global infrastructure, making the Anglo-Teck merger particularly strategic.

Anglo American first agreed in September to merge with Teck Resources (TSX:TECKa), a move expected to significantly expand its copper production capacity. The combined entity is set to hold a stronger competitive position in a market increasingly shaped by electrification and green-energy investments.

BHP previously made multiple takeover offers for Anglo American over the past year, all of which were rejected. Reports indicated that BHP recently renewed its interest with another proposal, but Anglo again dismissed the offer, choosing instead to stay committed to its merger with Teck. Analysts suggest that Anglo saw greater long-term value in the merger than in BHP’s approach, especially in terms of operational synergies and growth potential in the copper sector.

With BHP stepping aside, the Anglo-Teck merger is expected to proceed without another competing bid from the mining giant. Industry experts will be watching how the newly combined company reshapes global copper supply and how BHP redirect its strategic focus after the withdrawal.