BHP's proposal for Anglo American to spin off platinum and iron ore subsidiaries ahead of a takeover would likely require approval from South African regulators, according to a government agency.
Under BHPs offer, Anglo would need to first divest its controlling interests in Kumba Iron Ore and Anglo American Platinum, both of which are listed in Johannesburg and operate assets in South Africa. Last week Anglo rejected the initial $39 billion (around R740 billion at the time) proposal from the Australian mining giant.
BHP is considering making an improved proposal for London-listed Anglo, Bloomberg reported April 27, citing people familiar with the matter.
If Anglo shareholders accept an improved offer with the same conditions, spinning off Kumba and Amplats is 'very likely to meet the mandatory thresholds' that would require approval from South Africas regulatory authorities, Competition Commission spokesman Siyabulela Makunga said in an emailed response to questions.
