BHP/Anglo American: A Decarbonising Solution

• BHP (BHP AU)'s all-scrip unsolicited Offer for Anglo American (AAL LN), zeroes in on AAL's copper assets as demand for the metal increases for use in EVs and renewable power.

• The proposal has been labelled highly opportunistic by some shareholders and South African politicians. And that the value of AAL's Chilian/Peruvian copper mines are obscured by its sprawling business interests.

• The Offer remains conditional and non-binding. A transaction hinges off AAL spinning off its South African iron ore and platinum businesses. Expect AAL to reject terms, but remain engaged.