KUMBA IRON ORE LTD S/ADR

Diversified miners Glencore (OTC:GLNCY) and Anglo American (OTC:NGLOY) offer a better match than that proposed in BHP Group‘s (NYSE:BHP) offer for Anglo, RBC Capital Markets analyst Marina Calero said in a note to clients on Friday. Last week, Australia-headquartered BHP said it had made a $39 billion offer for London-based Anglo, which swiftly rejected the proposal as too low. This week, Reuters reported that Glencore, which is based in Switzerland, is considering a bid for the UK miner. "We see the potential for a GLEN/AAL combination to have higher synergies vs. BHP/AAL given the closer proximity of the assets and the potential synergies for GLEN’s marketing division," Calero said. Also Read: Copper Is A Hot Commodity: Bidding War for Anglo American May Emerge After BHP’s ‘Low Ball’ Offer — ‘Let The Games Begin’ Copper assets are at the heart of both companies' interest in Anglo as the red metal is a key component of electric vehicles and renewable energy installations, demand for which is accelerating as nations around the world transition away from fossil fuels. All three diversified miners are also involved in coal. "Mining synergies would largely come from the South American copper division and the Australian coal assets," Calero said. In ...Full story available on Benzinga.com

Related tickers: BHP, GLNCY, KIROY, SOUHY, NGLOY, ANGPY.

Australian multinational miner BHP Group's (NYSE:BHP) nearly $40 billion bid for rival Anglo American (OTC: NGLOY) may not be enough to acquire the company as other diversified miners will probably make rival bids amid the global scramble for copper assets. After completing a $6.4 billion takeover of Australian copper producer OZ Minerals last year, BHP is doubling down on the red metal amid widespread expectations that demand will greatly increase in coming years as the global economy transitions from fossil fuels. Solar and wind farms and electric vehicles require more copper than traditional utilities and internal combustion engine automobiles. "This is the latest move to consolidate in industrial metals driven by a scramble for copper and other metals central to the world’s clean energy movement," Sean Casterline, founder of the investment consulting firm Delta Capital Management, told Benzinga. BHP, already the world's biggest mining company, is currently the third-largest copper producer behind Chile's state-run Codelco and U.S.-based heavyweight Freeport-McMoRan Inc. (NYSE:FCX). A combination with Anglo American would push BHP to the pole position.   "In our view, the copper assets are the primary driver of a proposed transaction," RBC Capital Markets analysts said.  Rival Bids Seem Likely BHP said it offered 25.08 pounds ($32.27) a share for London-based Anglo American, which said it is reviewing the proposal. The all-share deal values Anglo American at GBP 31.1 billion ($38.9 billion) and is contingent on the U.K. company spinning off its shareholdings in Anglo American Platinum Ltd. (OTC:Full story available on Benzinga.com

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