Exclusive: Glencore studying an approach for Anglo American, sources say

LONDON, May 2 (Reuters) – Commodities group Glencore (GLEN.L), opens new tab is studying an approach for Anglo American (AAL.L), opens new tab, two sources said, a development that could spark a bidding war for the 107-year old mining company.

Glencore has not yet approached Anglo, one of the sources said. The discussions are internal and preliminary at this stage and may not result in an approach, the source added.

“We do not comment on market rumour or speculation,” a Glencore spokesperson said.

Anglo on Friday rejected a $39 billion all-stock proposal from the world’s No. 1 miner BHP Group (BHP.AX), opens new tab.

BHP’s proposed premium was 31% above Anglo’s closing price on April 23.

A source familiar with the matter previously told Reuters that the Australian mining giant is considering making an improved offer. It has until May 22 to make a formal bid.

U.S. shares of Anglo American rose after the news, closing up 6.5% on the session. Glencore’s U.S. shares fell 1%.

Anglo is attractive to its competitors for its prized copper assets in Chile and Peru, a metal used in everything from electric vehicles and power grids to construction, whose demand is expected to rise as the world moves to cleaner energy and wider use of AI.

Source: REUTER