Mining giant BHP is considering a higher bid for rival Anglo American

The mining giant BHP, which encountered a failure from its takeover target Anglo American, is considering making a higher offer. The news agencies Bloomberg and Reuters reported this on Saturday.

Anglo American, a South African company headquartered in London, rejected rival BHP’s advances earlier this week. BHP is said to be willing to pay around $39 billion to acquire Anglo American.

The British-Australian mining giant BHP is now considering making an improved offer, the news agencies Reuters and Bloomberg report.

According to Reuters, BHP would consider a revised proposal in the coming weeks. The news agency indicates that BHP and Anglo American did not immediately respond to its request for explanation.

Bloomberg also reports that BHP wants to consult with its advisors in the coming weeks. BHP is said to be discussing the merits of a takeover deal with its major shareholders and seeking to convince them to support the proposal.

But BHP has not yet made a final decision on the size and structure of the new proposal, Bloomberg reports.

With the offer, BHP mainly wants to respond to the booming demand for copper. The BHP-Anglo American combination would account for 10 to 15 percent of global copper production.

The demand for copper is only expected to increase in the coming years. Due to the transition to green energy, the demand for electric cars, wind farms, energy networks, etc. will only increase. At the same time, rapid digitalization is driving the need for additional data centers, and therefore the demand for copper incorporated in them.