Elliott Management has bought about $1 billion worth of shares in Anglo American, a mining company, over the past few months, according to someone familiar with the situation.
Elliott Advisors, the activist’s branch in the UK, confirmed in a regulatory filing on Friday that it holds a 2.5% stake in Anglo American. The investment, made through cash-settled deals, is valued at approximately £891 million, which is roughly $1.1 billion in US dollars. Following this news, Anglo-American shares went up by as much as 5% on Friday.
This development comes as Anglo American, a London-based miner worth $43 billion, faces interest from BHP, another mining giant with operations around the globe.
However, Anglo-American rejected BHP’s $39 billion takeover offer on Friday, stating that it undervalued the company and its future potential.
Anglo American chose not to provide further comments. The company is one of the world’s top copper producers.
BHP’s bid would have involved separating Anglo-American’s South African subsidiaries. Copper is crucial for the global shift to clean energy as it’s used in making electric vehicles and wind turbines.
Stuart Chambers, Anglo American’s Chairman, emphasized in the rejection that copper accounts for 30% of the company’s total production.
He also mentioned the potential for creating more value for shareholders in the coming months and years through strategic growth options in copper and other promising products.
Elliott Management has a history of involvement with mining firms, including BHP in 2017. At that time, the activist group pushed BHP to spin off its petroleum businesses and change its primary stock listing from Australia to London.
In the beginning, the suggestion was dismissed by BHP but later exited the oil business in 2021. With a market capitalization of $145 billion and mining sales reaching $53.8 billion in 2023, BHP remains one of the world’s largest mining companies.
