2024-04-24 21:48

Anglo's shares up nearly 14% after BHP confirms offer Would be preceded by Anglo platinum, iron ore demergers BHP would gain access to more copper, potash, coking coal Australian miner has until May 22 to make firm offer MELBOURNE/LONDON, April 25 (Reuters) - BHP Group (BHP.AX) New Tab, opens new tab bid $38.8 billion for Anglo American (AAL.L) New Tab, opens new tab on Thursday, offering a deal to forge the world's biggest copper miner and driving its smaller rival's shares nearly 14% higher. BHP said it will offer Anglo's shareholders 25.08 pounds ($31.39) per share, a premium of 31%, and spin out its London-listed target's iron ore and platinum assets in South Africa, where BHP, the world's largest listed miner, has no activities. Anglo, which owns mines in countries including Chile, South Africa, Brazil and Australia, said its board was reviewing BHP's unsolicited, non-binding and highly conditional proposal. Under UK takeover rules, BHP has until May 22 to make a firm offer. Shares in Anglo were up 13.7% at 25.06 pounds at 1123 GMT. A deal would create a group with around 10% of the global output of copper, now one of the most sought-after metals. It could also trigger further consolidation in a sector which has seen a rush of mergers and acquisitions as companies attempt to raise their exposure to metals which, like copper, are seen as critical to the global energy transition. "Any deal, if agreed, would keep regulators super-busy as there is so much to unpick and there will be concerns about the extent of the concentration in the copper industry," said Susannah Streeter, head of money and markets at Hargreaves Lansdown. The bid comes after Anglo, which had a market value of $37.7 billion at Wednesday's close, began a review of its assets in February in response to a 94% fall in annual profit and a series of writedowns due to a drop in demand for most of its metals. BHP, best-known for mining iron ore, copper, coking coal, potash and nickel, was valued at about $149 billion. An Anglo deal would be the second major acquisition by BHP in about a year after its 2023 purchase of copper miner Oz Minerals. Its bid adds to a frenzy of global M&A activity, including gold giant Newmont's (NEM.N) New Tab, opens new tab $16.8 billion buyout of Australia-based Newcrest Mining late last year. "It's a good deal for BHP. Anglo is obviously very much in play now and there's probably room for others to interlope. This is going to set the whole sector on fire," Ben Cleary, portfolio manager at Tribeca Investment Partners, which holds shares in both companies, said of the proposal. A takeover of Anglo would likely be among the 10 biggest-ever mining deals by value and could involve delisting Anglo from the London market, a potential blow to an exchange that is struggling to retain big companies and attract IPOs. Some said BHP would need to offer more to get a deal done. "There is ... almost no way ... that the premium being offered by BHP is going to be enough to entice Anglo management to transact," said Mark Kelly of advisory firm MKP. South Africa's Public Investment Corporation (PIC), which holds 6.99% of Anglo American according to LSEG data, said it would assess any offer "to ensure value creation". "The mining sector remains a critical part of the South African economy, impacting a wide variety of stakeholders, therefore, new opportunities that may arise in the sector need to take these factors and long-term sustainability into account," it added in a statement. COPPER BHP would gain more copper and potash, which are its key strategic commodities, and more coking coal in Australia. Anglo has copper mines in Chile and Peru, where BHP also has operations, and their combined output would amount to around 2.6 million metric tons a year, pushing it well ahead of U.S.-based Freeport-McMoRan (FCX.N) New Tab, opens new tab and Chilean state miner Codelco. Developments such as artificial intelligence and automation - and the energy transition, which includes electric vehicles and renewable energy - have driven up demand prospects for copper cable used to conduct electricity. Copper prices on the London Metal Exchange have surged 15% this year on expectations of higher demand given encouraging economic data, U.S. rate cut bets, speculative trading and supply bottlenecks driven by the December shutdown of one of the world's largest open-pit copper mines. BHP is targeting copper production of between 1.7 million and 1.9 million tons for the 12 months ending in June, while Anglo's 2024 production guidance is 730,000 to 790,000 tons. CARVE-OUTS A condition of BHP's proposal is that Anglo first distributes its stakes in Anglo American Platinum (AMSJ.J) New Tab, opens new tab and Kumba Iron Ore (KIOJ.J) New Tab, opens new tab to shareholders. Anglo's holdings in the platinum and iron ore miners are worth $7.44 billion and $5.4 billion respectively, according to LSEG data based on Wednesday's close of trade. It also owns 85% of diamond giant De Beers and BHP said its other high quality operations, including diamonds, would undergo a strategic review after a deal was done. South Africa's biggest mining investors are halting new projects in response to a slump in profits due to local challenges and weakening prices of commodities such as platinum. Meanwhile, the combined coking coal assets of the two miners, both in Australia's Queensland state, could come under regulatory scrutiny given a deal would merge two of the biggest producers in the global seaborne market. ($1 = 1.5396 Australian dollars) ($1 = 0.7989 pounds) Sign up here. https://www.reuters.com/markets/deals/bhp-considering-potential-buyout-offer-anglo-american-bloomberg-reports-2024-04-24/

2024-04-24 21:47

April 25 (Reuters) - A look at the day ahead in Asian markets. The depreciation of Asian currencies against the U.S. dollar, and the steps monetary authorities may take to prevent further weakness, dominate the market landscape across Asia on Thursday as the Bank of Japan gets its two-day policy meeting underway. The regional economic data highlights include South Korea's first quarter GDP, Malaysian consumer price inflation for March, and the latest trade figures from Vietnam and Hong Kong. After-the-bell earnings from U.S. tech giant Meta on Wednesday could weigh on Asian markets - shares plunged 10% in after-hours trade. Sentiment is fragile: some stock markets have recovered around half of their recent losses but Meta's slump throws a cloud over that, while U.S. bond yields spiked following a weak auction of five-year notes. Unease around currencies is deepening after the dollar on Wednesday smashed through 155.00 yen with no sign of Japanese authorities to slow or reverse the yen's fall. Will Tokyo act? An executive from Japan's ruling LDP told Reuters the party is not yet in active discussion on what yen levels would be deemed worth intervening in the market, but a continued slide towards 160 or 170 to the dollar could trigger action. It's hard to imagine the Ministry of Finance letting the dollar go to 160 never mind 170 yen before intervening. Then again, few would have imagined there would be no intervention at 155 yen either. Will MOF instruct the BOJ to wade into the FX market and buy yen just as the central bank starts its two-day policy meeting? In the current climate, which prompted a rare three-way joint statement on exchange rates from the United States, Japan and South Korea this month, nothing can be ruled out. In the realms of surprises, Indonesia's rate hike to counter the weakness of the rupiah would have caught many market participants off guard. The currency's subsequent 0.4% bounce was modest, but was the biggest in seven weeks and enough to pull it further from last week's four-year low. There will be more than a few grumbles across Asia at Tokyo's reluctance to anchor the yen, which is giving a huge competitive boost to Japan - the yen is at a 31-year low against China's yuan and close to multi-year lows against the currencies of South Korea, Thailand, Vietnam and others. India's central bank has intervened regularly recently to support the rupee and Bank of Thailand officials said on Wednesday the BOT intervened to ease excessive moves in the baht. U.S.-Sino relations took another twist after the U.S. Senate voted in favor of legislation that would ban TikTok in the United States if its Chinese owner ByteDance fails to divest the popular short video app over the next nine months to a year. Here are key developments that could provide more direction to markets on Thursday: - Bank of Japan begins policy meeting - South Korea GDP (Q1) - Malaysia inflation (March) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-04-24/

2024-04-24 20:49

CAIRO/DUBAI, April 24 (Reuters) - A coalition vessel successfully engaged one anti-ship ballistic missile (ASBM) launched from the Iranian-backed Houthi "terrorist-controlled areas" in Yemen over the Gulf of Aden, the U.S. Central Command (USCENTCOM) said on Thursday. "The ASBM was likely targeting the MV Yorktown, a U.S.-flagged, owned, and operated vessel with 18 U.S. and four Greek crew members," USCENTCOM said in a statement. "There were no injuries or damage reported by U.S., coalition, or commercial ships," it added. Separately, US CENTCOM said it "successfully engaged and destroyed four airborne unmanned aerial vehicles (UAV) over Houthi-controlled areas of Yemen". The ASBM and UAVs presented an imminent threat to U.S., coalition, and merchant vessels in the region, it said. Iranian-backed Houthi militants in Yemen attacked the U.S. ship Maersk Yorktown, an American destroyer in the Gulf of Aden and Israeli ship MSC Veracruz in the Indian Ocean, Houthi military spokesperson Yahya Saree said in a televised speech on Wednesday. Yemen's Houthis have been attacking ships in the Red Sea region since November in what they say is a campaign of solidarity with Palestinians fighting Israel in Gaza. Separately, British maritime security firm Ambrey said earlier on Wednesday that it was aware of an incident southwest of the port city of Aden, an area where the Houthis often target ships they say are linked to Israel or the United States. The vessel reported an explosion in the water about 72 nautical miles east-southeast of Djibouti, an updated advisory from Ambrey said. Houthi attacks have disrupted global shipping through the Suez Canal, forcing firms to re-route to longer and more expensive journeys around southern Africa. The United States and Britain have launched strikes on Houthi targets in Yemen. Sign up here. https://www.reuters.com/world/middle-east/ambrey-is-aware-an-incident-southwest-yemens-aden-advisory-note-2024-04-24/

2024-04-24 20:48

CHICAGO, April 24 (Reuters) - The U.S. government will require dairy cattle moving between states to be tested for bird flu starting on Monday as federal officials ramp up their response to an outbreak that has bled over into the U.S. milk supply. Agriculture Secretary Tom Vilsack on Wednesday said all laboratories and state veterinarians in the country must report positive tests, and the U.S. Department of Agriculture (USDA) would pay for increased testing. The measures aim to contain the spread of bird flu, which has been reported in eight states and 33 dairy herds since it was first detected in late March in Texas. A person exposed to cattle tested positive for the disease and suffered conjunctivitis. Dr. Michael Worobey, an evolutionary biologist at the University of Arizona, said based on new information, it appears that infections with the H5N1 virus in dairy cattle occurred through a single transmission event from a bird to a cow sometime in late 2023, likely in December. Worobey and colleagues analyzed genetic sequences of the virus released by the USDA over the weekend. The U.S. Food and Drug Administration reported on Tuesday that it found bird flu virus particles in some pasteurized milk samples, but said it remains safe for human consumption as such milk has been heated to a high temperature to kill harmful bacteria and viruses. Vilsack said the U.S. milk supply is safe "based on the information we currently have available," adding that no live virus has been found. Milk containing bird flu particles entered the commercial supply from asymptomatic cows that were found to be infected through testing, he said. USDA has carried out more than 2,000 tests on cattle samples over the last several weeks, Vilsack said. Dairy cows must test negative for influenza A virus, which includes bird flu, at an approved laboratory before being shipped across state lines, the USDA said. Owners of cows that test positive will be required to provide epidemiological information, including animal movement tracing, the department said. The agency plans to initially focus testing on lactating cows. SPREAD BETWEEN COWS Richard Webby, director of the World Health Organization's Collaborating Center for Studies on the Ecology of Influenza in Animals and Birds at St. Jude's Children's Research Hospital in Memphis, said testing cows about to be transported will help. "If we can control the virus moving with those cows, then absolutely we're going to be better off," Webby said. Positive flu tests will prohibit cows from being moved for 30 days and until they test negative, Vilsack added. Dairy cattle appear to recover from bird flu, a disease often lethal to chickens and turkeys. "Over the last several weeks, USDA has noted spread between cows within the same herd; spread from cows to poultry; spread between dairies associated with cattle movements; and cows without clinical signs that have tested positive," Vilsack said. USDA estimates it will need about $500 million to continue to address outbreaks in dairy cows, commercial poultry flocks, wild birds and potentially other species. It is finalizing a request to transfer money from the Commodity Credit Corporation, which provides funds from the U.S. Treasury to help stabilize agricultural prices and support farm income. The Meat Institute, which represents U.S. meat processors, urged USDA and the U.S. Centers for Disease Control and Prevention (CDC) to conduct additional testing to ensure beef remains safe to eat and to protect meatpacking workers from infection. USDA said it is confident the meat supply is safe. The CDC maintained its low risk assessment for the general public after USDA microbiologists on April 16 "identified a shift in an H5N1 sample from a cow in Kansas that could indicate that the virus has an adaptation to mammals," the USDA said. The finding had been seen previously in other mammals and does not impact viral transmission, according to the department. The USDA in a statement said it "has not found changes to the virus that would make it more transmissible to humans and between people." Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/us-requires-bird-flu-tests-any-cattle-moving-interstate-commerce-2024-04-24/

2024-04-24 19:58

WINNIPEG, Manitoba, April 24 (Reuters) - Canada's competition concerns about U.S. agribusiness Bunge's planned takeover of rival Viterra sets the stage for the companies to sell some assets to close the deal, experts said. Bunge's CEO Greg Heckman said remedies may be unnecessary. The Competition Bureau in Canada, a major grain and canola exporter, said on Tuesday it was worried about reduced competition to buy farmers' crops in Western Canada and to sell canola oil in Eastern Canada if the deal proceeds. It also flagged as a concern Bunge's (BG.N) New Tab, opens new tab minority stake in grain handler G3, a Viterra (VILC.UL) competitor. The global agriculture merger is the largest-ever by dollar value, creating a company worth $34 billion including debt. Analysts have said Canada was one of the countries in which the two companies' assets had the most overlap. The Competition Bureau said Canada will ask the companies to address any overlapping concerns related to competition and transportation. Such remedies often involve selling assets to third parties in sensitive markets. "These assets are really valuable," said Derek Brewin, an agribusiness professor at the University of Manitoba. "I think there will be competition from any of the Canadian buyers." Brewin said Bunge may address Canada's concerns by divesting its G3 stake and a Western Canadian crushing plant. G3 is a "Cadillac export machine," with its four-year-old terminal at Port of Vancouver and modern country grain-handling facilities, Brewin said, adding that canola-crushing facilities would also see strong buying interest. France-based Louis Dreyfus (LOUDR.UL), which is expanding its Canadian canola-crushing capacity, might be a logical buyer of both assets, Brewin said. Louis Dreyfus could not be reached for immediate comment. Richardson International and Cargill (CARG.UL) also crush canola and compete with Viterra to handle farmers' grain. ASSET SALES? Regulators in 13 jurisdictions, including the U.S., the European Union, Brazil and China, have not yet approved the deal, Bunge's Heckman said on Wednesday. But he still expects the transaction to close by the middle of this year. "We don't really see any need for remedies in Canada. It would be too early to speculate on that, but we look forward to engage on the details," Heckman told analysts on a call to discuss the company's quarterly earnings. But Ellen Goddard, a professor emerita of agricultural economics at the University of Alberta, said Bunge will likely have to shed assets to gain Canada's approval. Logical buyers will be those companies whose networks fit best with available assets, but buyers may have leverage to press Bunge to include additional facilities in deals, Goddard said. The Competition Bureau specifically cited concerns about reduced competition to buy farmers' canola around Bunge's crushing plants in Nipawin, Saskatchewan and Altona, Manitoba. It also worried about reduced competition in selling canola oil in Ontario and Quebec, where Bunge, Viterra and Archer-Daniels-Midland (ADM.N) New Tab, opens new tab are the only producers. "They'll go back to the drawing board now," said Murray Fulton, professor emeritus of public policy at the University of Saskatchewan, about the companies. "My guess is they've probably already been working on this." Sign up here. https://www.reuters.com/markets/deals/canadas-worries-about-bunge-viterra-deal-may-force-asset-sales-2024-04-24/

2024-04-24 19:53

ROME, April 24 (Reuters) - A pre-Roman necropolis characterised by rich grave artefacts was discovered in southern Italy during excavations for the construction of an electricity power station, local authorities said on Wednesday. The necropolis was found near Amorosi, some 50 km (31 miles)away from Naples, during preliminary excavations to build an electric station linked to a high-speed train line, they said in a statement. The best-preserved archeological evidence was found in a burial area of around 13,000 square metres (139,930 sq feet) that dates between the final stages of the Iron Age and the 8th-7th century B.C. and includes 88 tombs. Weapons were found in the male tombs, while the female tombs included bronze ornaments such as bracelets and pendants. "The grave artefacts also included large quantities of vases of different shapes, often stacked on top of each other, usually laid at the feet of the deceased in a reserved space," the local cultural heritage authority said. "This archeological discovery is of decisive importance for the history of our culture," Amorosi Mayor Carmine Cacchillo said. Sign up here. https://www.reuters.com/world/europe/pre-roman-necropolis-unearthed-italy-during-excavations-2024-04-24/