Mining giant BHP Group on Thursday said it had made an all-share takeover offer for rival Anglo American , valuing the smaller company at £31.1 billion ($38.9 billion).
Anglo American shares leapt at the market open and were 12% higher at 9 a.m. in London.
Australia-based BHP, the biggest listed miner according to Companies Market Cap, said that the deal would deliver 0.7097 BHP shares per Anglo American share to Anglo American's ordinary shareholders.
Anglo American has a huge copper operation based in South America and a production target for the metal of 730,000 to 790,000 tons in 2024.
This compares with a copper output aim between 1.7 million and 1.9 million for BHP over the same period.
Organizations:
Mining, BHP Group, BHP
Locations:
London, Australia, American, South America