Australia-based BHP on Thursday said it had made an all-share takeover offer which valued the smaller company at £31.1 billion ($38.9 billion).
"The BHP proposal is opportunistic and fails to value Anglo American's prospects, while significantly diluting the relative value upside participation of Anglo American's shareholders relative to BHP's shareholders," he said.
Anglo American Chairman Stuart Chambers said the proposed restructure was "highly unattractive, creating substantial uncertainty and execution risk borne almost entirely by Anglo American, its shareholders and its other stakeholders."
Shares of Anglo American Platinum rose more than 2% on the announcement, while Kumba Iron Ore moved 0.9% lower.
Chambers said that, in its current state, Anglo American was "well positioned" to benefit from that energy transition.
Persons:
BHP's, Stuart Chambers, Chambers, — CNBC's Jenni Reid
Organizations:
BHP Group, BHP, CNBC, Limited, Iron Ore Limited
Locations:
Australia, London, American, South Africa