BHP wants to merge with Anglo

Article Excerpt

BHP GROUP LTD. (ADR) $59 is a buy. This company (New York symbol BHP; Resources sector; ADRs outstanding: 2.6 billion; Market cap: $153.4 billion; Dividend yield: 5.2%; Takeover Target Rating: Medium; www.bhp.com) is one of the world’s largest producers of iron ore, copper, nickel and coal. BHP recently offered to acquire rival mining firm Anglo American PLC (Over-the-counter symbol AAUKF) in an all-stock merger worth $42.7 billion. The combined company would control 10% of the world’s copper production. That would help BHP take better advantage of rising copper demand from makers of electric vehicles and power transmission lines. Anglo American has rejected BHP’s proposal. Instead, it now plans to sell or spin off its diamond, platinum and metallurgical coal operations. Activist firm Elliott Partners, which owns 2.6% of Anglo American, will probably push it to negotiate a better deal with BHP or other interested bidders. BHP Group is a buy. buy…