SYDNEY, April 25 (Xinhua) -- Australian mining giant BHP said on Thursday it had made a takeover offer worth 31.1 billion British pounds (38.8 billion U.S. dollars) for rival Anglo American, the Australian Financial Review (AFR) newspaper reported.
A successful deal would push BHP ahead of its rivals as the world's biggest copper producer, according to the AFR report.
Investors of London-listed Anglo American will receive 0.7097 of BHP stock for each share, BHP said in a statement to the London Stock Exchange.
It represents a total value of approximately 25.08 pounds per Anglo American ordinary share, valuing Anglo American's share capital at 31.1 billion pounds, BHP said.
Anglo American confirmed the offer on Thursday. Its share price jumped more than 13 percent to 24.98 pounds in early trading, AFR reported.
A transaction depends on Anglo American spinning off its South African iron ore and platinum businesses, and the offer remains conditional and non-binding, the report said.
The acquisition of Anglo American and its South American copper assets would dwarf BHP's 9.6 billion-Australian-dollar (6 billion-U.S.-dollar) takeover of Australian copper miner OZ Minerals, and fit with the mining giant's prediction that global copper demand will double, according to AFR. ■
