British multinational mining company Anglo American’s Board has dismissed BHP Group’s $38.8bn (£31.02bn) takeover proposal, stating that it significantly undervalues the business and its future prospects.

Anglo American received the unsolicited, non-binding and “highly conditional” all-scrip bid on 25 April 2024 and was given a deadline of 22 May to present a definitive offer.

As per BHP’s condition to the buyout, Anglo American was required to distribute to shareholders its interests in South Africa’s Anglo American Platinum and Kumba Iron Ore.

The UK miner’s board unanimously rejected the proposal, calling it highly unattractive for its shareholders due to its complexity, uncertainty as well as significant execution risks.

In light of the board’s decision, Anglo American has advised its shareholders to refrain from taking any action concerning the offer.

According to Bloomberg, BHP would gain access to 10% of global copper output had the deal materialised. This would give the company an upper hand, considering the expected shortage of the metal and its integral role in the energy transition.