BHP Lobs All-Share Proposal for Anglo American; Shareholders Take No Action

No-moat BHP proposes to buy no-moat Anglo American in an all-share transaction via a scheme of arrangement. Under the proposal, Anglo American shareholders would receive 0.7097 BHP shares for each Anglo American share they hold. The proposal is conditional on Anglo American first demerging and distributing its 78.6% shareholding in Anglo American Platinum, its platinum group metals, or PGMs, business, and 69.7% shareholding in Kumba Iron Ore to its shareholders. It is also subject to due diligence and other conditions. The proposal is roughly equal to our base-case fair value estimate for Anglo of GBX 2,080 per share and Anglo is reviewing the proposal.