Anglo American shares surge higher as BHP proposes takeover

Anglo American shares surged sharply higher on Thursday after BHP, the world’s largest mining company, made a $31bn approach for the company.

The move comes amid a recovery in commodities prices and improving sentiment towards China.

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Starting from a low base, investor sentiment toward Chinese equities is warming, and stocks with exposure to the world’s second-largest economy are also enjoying the benefits. 

However, the implications for London’s market run a lot deeper. Anglo American may be the next in a long line of companies leaving London either by switching their listing or being taken over. BHP itself was once a London-listed company before shifting its primary listing to Sydney.

’The buyout offer from BHP, the world’s largest publicly listed miner, for Anglo American, won’t just shake up the mining industry, but will send a fresh chill through the City of London,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

“There are concerns that if the deal goes through it could be the tip of the iceberg and more giants could leave the exchange. It comes hot on the heels of speculation that Shell might up sticks and leave for New York, rumours that Ocado may be considering leaving for the Big Apple, and follows the crushing disappointment of home-grown chip designer Arm choosing the Nasdaq over the FTSE 100.”

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Anglo American was one of the UK Investor Magazine’s Top 15 Stocks Picks for 2024. After the 12% rise today, Anglo American is now up 26% in 2024, making it one of our best performers today date.

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