BHP, the world’s largest publicly listed mining company, has made an acquisition bid to Anglo American, potentially valuing the deal at USD 39 billion.

If approved, this merger would stand as one of the mining industry's most significant consolidations. Lesser producers also mean stronger pricing power for those producers. With this acquisition, BHP aims to acquire Anglo-American’s renowned copper assets, considered among the best globally.

If finalized, the merger would create a conglomerate controlling approximately 10% of the world's copper production and could also trigger further consolidation in the sector. Mining has seen a rush of mergers and acquisitions as companies attempt to raise their exposure to metals seen as critical to the global energy transition. Developments such as artificial intelligence and automation - and the energy transition, which includes electric vehicles and renewable energy - have driven up demand prospects for copper cable used to conduct electricity.