Anglo American (JO:AGLJ) PLC (LSE:AAL) suitor BHP (ASX:BHP) Group Ltd (LSE:BHP, ASX:BHP) has requested an extension to its 'put up or shut up' takeover deadline as it offered new concessions, including a potential 'reverse break fee', and wants to continue talks.
Last week Anglo and BHP agreed on an extension to the deadline for BHP to make an offer to 29 May.
Since then, BHP says it has been working "extensively" to address key matters and has proposed a range of "socioeconomic measures" that it said are intended to address Anglo American's concerns about how the deal is structured.
BHP said it is confident that the measures "provide a viable pathway to resolve the matters" that Anglo raised and also support regulatory approvals in South Africa, provide "greater economic benefits" to the country than the FTSE 100 miner's proposed restructuring plan, "mitigate perceived value and completion uncertainty" and finally also ensure costs are "not borne disproportionately" by Anglo shareholders.
The Australian mining giant said it would also be willing to discuss a break fee that it would pay if regulatory and other approvals are not achieved.
BHP suggests include distributing shares of Anglo Platinum and Kumba Iron Ore, maintaining JSE listings, and committing to socio-economic initiatives in South Africa for at least three years, including employee ownership, creating a Mining Centre of Excellence, employment and funding commitments, local procurement support, and maintaining South African regulatory undertakings for at least three years.
To allow these to be mulled over by Anglo, BHP wants a further extension of the deadline but said there is still no certainty that a firm offer will be made.