BHP’s Anglo buyout makes business sense if the price is right

The expectation now is that BHP may boost its offer, or other buyers for Anglo, or parts of its diversified portfolio, may emerge. — Reuters

BHP Group’s proposed takeover of rival miner Anglo American is one of those rare instances where a mega-merger actually makes strong business sense, but it will be difficult to pull off to the satisfaction of all parties.

BHP, the world’s largest mining company, offered US$39bil last week to buy Anglo, a move the London-listed miner that grew out of South Africa rejected as “significantly” undervalued.