BHP shares dip after mining giant walks from $49 billion Anglo takeover deal

By Melanie Burton and Scott Murdoch

SYDNEY (Reuters) -The Australian-listed shares of BHP Group (NYSE:) fell 1.5% on Thursday after the mining giant walked away from its $49 billion plan to take over rival Anglo American (JO:), ending for now its six-week pursuit.

The benchmark S&P/ASX200 index was off 0.7% in early trading.

Anglo said after BHP’s statement on Wednesday that it was fully focused on delivering plans it has set out to increase value to shareholders.

BHP’s decision to withhold a binding bid came after Anglo said it would not grant the Australian-headquartered mining group a further extension to iron out details of a deal.

The developments ended a tense standoff between the two global mining giants and negotiations in which shareholders warned BHP not to pay too much to secure control over Anglo.

“This removes the risk of them overpaying and the big dilutionary share issue,” said John Milroy, a private wealth adviser at Ord Minnett.

“Clearly they remain acquisitive and will be shifting through their other targets for building out the portfolio.”

Defending its position to reject BHP, Anglo outlined plans to divest its less profitable assets and focus on expanding copper output.

Anglo’s shares closed 3% lower at 24.80 pounds in London trading on Wednesday.