Anglo American rejects BHP's request to extend $49B deal talks

Anglo American (AAL.L) has rejected BHP Group's (BHP) request to extend the discussion deadline on its $49 billion takeover offer. BHP has until 5 p.m. BST Wednesday to commit to an offer.

Yahoo Finance's Seana Smith and Brad Smith discuss the deal and its potential impact on the commodities landscape.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Melanie Riehl

Video transcript

Anglo American officially rejecting BHPS request to extend the deadline for talks on its $49 billion takeover offer.

The deal deadline will remain at 5 p.m. London time today.

You're taking a look at the stock reaction here.

Uh, pre market.

We're seeing BHP group here flat, just barely to the downside.

Anglo American down by about 1.9% amid a wave of consolidation that we've seen in the broader energy sector and specifically oil and gas landscape right now, looking at Anglo American under just a bit of pressure off nearly 2% in pre market.

Now this comes after, like you were just saying they rejected the BHP's request here for more time.

So what happens next?

So BHP has until 5 p.m. London time today to commit to an offer offer or walk away for six months.

And R BC analyst uh Marina Clara was out with a quick reaction here, noting the Anglo was already below the implied value of BH BS latest offer.

So she sees further pressure as the probability of an acquisition is repriced in terms of what could happen next.

Talk about a possible hostile takeover, she's saying that BHP is unlikely to go hostile, given the complexity of this deal.

So again, you're looking at BHP here in pre market up just over 1%.

On the flip side, you've got Anglo American those shares off nearly 2%.

But again, BHP has until 5 p.m. London time today to commit to an offer or walk away for six months, right?

And just to further clarify, I should have said commodities landscape consolidation that we've seen because this is really more on the multinational mining elements of, uh, some of the commodities, uh, of of course, are, as Anglo American would say in their tag line, improving people's lives.

So, uh, ultimately, at the end of the day, this would kind of consolidate things like diamonds, platinum, copper, iron ore and so forth.

In some of the mining efforts there