BHP's Takeover Plans on Hold

BHP Group Ltd. has reportedly put its plans to acquire Anglo American on hold. The decision comes as the British mining company's stock price has surged, making the acquisition too costly for the Australian mining giant, according to sources close to the matter cited by the Financial Times.

Stock Performance and Previous Offers

Anglo American's shares have seen a remarkable 40% increase over the past year, trading about 3% higher than in May when BHP made its third offer of approximately £29.34 per share, which was ultimately rejected. In contrast, BHP's shares have fallen by 17% over the same period.

Future Prospects and Recent Developments

Despite earlier reports of BHP CEO Mike Henry considering a new bid after the six-month standstill period ended in November, the current stock prices of Anglo American are deemed too high to justify a fresh offer. Meanwhile, Anglo American has proceeded with its restructuring plan by selling its Australian steelmaking coal mines portfolio to Peabody Energy in November.