Mining group BHP and Canada's Lundin Mining jointly acquire South American company Filo.

Global mining companies BHP Group and Foreign exchange trading platform Moya FinanceCanada-listed Lundin Mining announced jointly acquiring developer Filo for CAD 4.5 billion (approximately USD 3.25 billion) to advance South American projects.

BHP and Lundin will establish a 50/50 joint venture to hold the Filo del Sol and Josemaria projects located on the Argentina-Chile border.

BHP and Lundin have offered CAD 33 per Filo share, a 12.2% premium to the Canadian copper company's closing price on Monday. According to the agreement, BHP is expected to pay a total of USD 2.1 billion in cash.

On July 12, Reuters reported that Lundin and BHP were weighing the possibility of a joint bid.

CLSA analyst Baden Moore stated, "BHP has been striving to enhance its copper resource outlook. Despite significant fluctuations in copper prices, the mid-term fundamentals remain positive, and we still have a favorable outlook on copper."

He added, "This deal showcases other strategies for BHP to expand its copper resources to its shareholders, even though it doesn't mean they have entirely given up on acquiring Anglo American."

In May this year, BHP withdrew a USD 49 billion acquisition proposal aimed at acquiring Anglo American after being rejected three times within six weeks, hoping to increase its copper resources through the deal.

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Very good!（538）