BHP said in a statement Thursday that it valued Anglo American shares at £25.08 apiece, or £31.1 billion in total. If completed, the acquisition would increase BHP’s access to copper reserves, it added. The potential deal would have a higher value than the $38.3 billion acquisition of Switzerland’s Xstrata by commodities company Glencore in 2012, according to Dealogic data.
Copper is an essential component in some renewable energy technologies, including solar panels and electric vehicles. And it is in high demand: The price of the metal on the London Metals Exchange has risen more than 13% so far this year to almost $10,000 a metric ton, its highest level in about two years. A year ago, BHP acquired Australian rival Oz Minerals to widen its access to copper and nickel.