South Africa may oppose world’s largest mining deal

Significance Although Anglo American’s board promptly rejected the bid, BHP is expected make a revised offer. This would have major implications for Southern African mining, as BHP has indicated it would sell Anglo American’s mining assets in the region. Impacts South African opposition to the deal will not be affected by May's general elections or the political make-up of the next government. A successful deal would intensify a scramble for copper assets around the world and prompt other mergers in the mining sector. New platinum and iron ore companies created by the sale of assets in South Africa would struggle as independent producers. Even if unsuccessful, BHP’s bid for Anglo American has highlighted the company as a potential takeover target.