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LONDON — BHP Group on Wednesday said it believes an extension to talks with takeover target Anglo American is necessary, as the deadline for discussions looms later in the session.
The Australian miner said in a statement that it had proposed a number of “socioeconomic measures” to address concerns over its bid, but added that more time was needed for discussions.
The offer values the company at £38.6 billion ($49.2 billion), according to previous Reuters calculations.
“BHP believes a further extension of the Deadline is required to allow for further engagement on its proposal,” it said in a statement.
The rival miners have until 5 p.m. London time Wednesday to reach an agreement following a week-long extension of last week’s deadline.
Anglo American told CNBC that it would respond to BHP’s request “in due course.”
Shares of Anglo American fell 2.2% at market open, before paring losses slightly to trade down 1.3%. BHP stock rose 1.2%.
BHP Group’s bumper takeover proposal is part of an effort to create a copper mining juggernaut and capitalize on the base metal’s critical role in the green energy transition.
Anglo rejected BHP’s previous offers, saying they undervalued the company and its prospects.
The British miner has also raised concerns over demands for it to de-merge from two of its South African entities, which company Chairman Stuart Chambers previously said would create “substantial uncertainty” and executive risk for the company.
The socioeconomic provisions outlined in BHP’s latest offer include investment in a mining research and development facility in South Africa, local employment guarantees and charitable contributions.
It remains unclear whether the proposals will be enough to push the needle on what would be the first mining mega-deal in decades.
“It’s a 50-50 right now in my view,” John Meyer, partner and mining analyst at SP Angel, told CNBC’s “Street Signs” on Wednesday.
BHP’s latest proposal does not constitute a formal bid, but Meyers said it was likely that Anglo would need to express agreement before a final offer is made.
“The pressure is on Anglo American to accept an offer. At that point, I think, BHP would then formalize the offer,” he noted.