Rio Tinto Eyes Potential Bid for Anglo American in the Mining Sector

Traders are closely watching the movement of Anglo American shares in response to a recent takeover bid by BHP Group, indicating an expectation of a higher offer by interested parties in the mining sector.

The current proposal set forth by BHP Group values Anglo American at £31.1 billion and includes a mix of BHP shares and the stock of two spun-off units under Anglo.

As Anglo American shares soared above the implied offer price, currently up 13% to 2,498.00 pence, traders are speculating on the potential for a revised bid either from BHP Group or other contenders such as Rio Tinto or Glencore.

Analysts, including Gregory Lafitte from Churchill Capital, foresee increased interest in Anglo American’s copper production, a strategic asset in the energy transition landscape, which could prompt competitive bidding in the near future.

The mining industry dynamics, coupled with the rising demand for copper, have pushed experts like Richard Hatch from Berenberg to suggest that BHP Group might need to sweeten its offer for Anglo American, considering the premium associated with copper assets.