BHP seeks extension to talks on move to take over mining rival Anglo American | Mining

Mining company BHP called on its acquisition target, Anglo-Americanto extend his term as negotiations between the two rivals continue.

The companies are in discussions about a deal worth almost £39 billion from Anglo rejected it a week ago amid efforts to reach agreement on a potential takeover structure.

of Australia BHP has a deadline of 5pm on Wednesday to make a firm offer or withdraw from takeover talks.

The mining company said it had proposed a number of “socio-economic measures” in a bid to ease concerns about its bid and called for more time to discuss it with Anglo American.

BHP’s three takeover approaches require its rival to spin off its South African operations, drawing heavy criticism from the government in Pretoria. Anglo American also opposed this.

However, Anglo has offered its own corporate shake-up, including a pledge to break up the 107-year-old business and sell its platinum division and diamond division to De Beers in a plan that has the backing of the South African government.

In a statement on Wednesday, BHP said: “BHP believes that the proposed measures it is proposing provide significant risk protection for Anglo American shareholders and complement the significant increase in value that Anglo American shareholders will receive from the potential combination.

“BHP believes that a further extension of the deadline is necessary to enable further engagement on its proposal.

“This announcement does not constitute a firm intention to make an offer and there can be no assurance that an offer will be made.”

A megamerger between the two companies would create the world’s largest copper mine with 10% of global production.

Anglo American’s vast copper reserves are a key driver of interest in the business, as the mineral is an important building block for low-carbon technologies such as solar farms and electric cars.