#BHP’s Bid for #AngloAmerican is Laden with Potential Pitfalls & Challenges…

Buying $AAL.L means $BHP would gain access to 3 of world’s largest #Copper mines.

Merger would improve BHP’s exposure to copper by ~40%—and more significantly—give it 10% of global copper production.

This, however, is likely to lead to significant anti-trust/competition scrutiny in Peru and Chile—not to mention South Africa. 

BHP’s stake would increase to 44% at Collahuasi, 50.1% at Los Bronces & El Soldado, and 60% at Quellaveco. 

Anglo-owned Quellaveco & BHP-owned Antamina mines are key to Peru’s economy. If both operations would to be under the same ownership, it would raise questions of potential market concentration or even become a major political concern.  As a result, the deal could face government and local opposition due to the scale and influence of the combined company.

In South Africa, where Anglo is considered a national treasure, the political challenges are likely to be worse as BHP seeks to shed the South African assets. 

"The nation’s minerals resources minister is not a big fan of BHP and has already voiced his opposition to BHP’s bid for Anglo”…

See the article on mining.com:

BHP-Anglo American potential merger: It’s all about copper

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