Anglo American (AAL.L) has been encouraged by key shareholders, including BlackRock (BLK.N), to continue talks with BHP Group (BHP.AX) regarding a proposed £38.6 billion ($49.18 billion) mining merger, a source familiar with the matter told Reuters on Saturday.
BHP, the world’s largest listed mining company, now has until May 29 to make a firm bid for Anglo American or it will be required to withdraw for at least six months under UK takeover rules, following a one-week extension granted on Wednesday.
The Financial Times, which first reported the news, said that BlackRock was among a few investors pushing for substantive negotiations with BHP.
Additionally, two other significant shareholders, Ninety One and Sanlam Investments, supported extending the talks, despite concerns about a deal structure that would require Anglo to spin off its stakes in its South African platinum and iron ore units.
Ninety One and Sanlam Investments did not respond to Reuters’ request for comment.
According to LSEG data, U.S.-based asset manager BlackRock holds a 9.6% stake in Anglo and is also a BHP shareholder.
BHP intends to maintain the structure and value of its latest takeover proposal, aiming to address Anglo’s concerns about execution risks over the next week, Reuters reported on Thursday.
The FT stated that people familiar with BHP’s strategy suggested there was only room for “smaller, creative structures to better share the risks.”
However, sources close to Anglo, cited by the newspaper, said that the deal structure needs to be modified or BHP must offer a higher price.
Anglo American declined to comment on the FT report, and both BHP Group and BlackRock did not respond to requests for comment.