Miner Anglo American rejects third takeover offer from rival BHP Group as talks deadline extended

LONDON — Anglo American rejected a third takeover proposal from rival BHP Group on Wednesday, as the companies agreed to extend the talks deadline by one week.

The British miner confirmed the third proposal from BHP offered about £29.34 ($37.33) per Anglo American share, based on undisturbed share prices as of the market close on April 23. The offer values the company at £38.6 billion, according to Reuters.

The bid also once again included demands for Anglo to unbundle its platinum and iron ore assets in South Africa, a process Anglo has previously deemed too risky and complex.

"The Board considered BHP's Latest Proposal carefully, concluded it does not meet expectations of value delivered to Anglo American's shareholders, and has unanimously rejected it," Anglo American Chairman Stuart Chambers said in a statement on the London Stock Exchange website.

"However, the Board is willing to continue to engage with BHP and its advisers on this topic and has therefore requested a one week extension to the PUSU deadline which has been consented to by the Panel," Chambers added.

Before discussions were extended, under U.K. takeover rules BHP previously had until 5:00 p.m. London time to make a formal and final offer for Anglo following a drawn-out four-week bidding battle.

Shares of Anglo American rose shortly after the announcement before paring gains to trade down 0.6% by 4:10 p.m. London time. BHP shares fell more than 3.7%.

The Australia-based mining and metals giant made two prior nonbinding offers for Anglo as it seeks to shore up its dominance in the copper industry given the metal's key role in the energy transition and products such as electric vehicles, power grids and wind turbines.

The combined companies would form a behemoth