Global miner BHP Group and Canada-listed Lundin Mining will jointly take over developer Filo Corp for C$4.5 billion ($3.25 billion), as they aim to advance their South American projects. The two companies will form a 50/50 joint venture to manage the Filo del Sol and Josemaria projects located along the Argentine-Chile border. They have offered C$33 per Filo share, which reflects a 12.2% premium over the company’s last closing price. BHP is expected to contribute $2.1 billion in cash for the acquisition.
Analyst Baden Moore from CLSA noted that BHP remains optimistic about the copper market, despite recent price declines, citing positive medium-term fundamentals. This acquisition demonstrates to BHP’s shareholders that the company is pursuing various strategies to enhance its copper exposure, especially after BHP’s recent withdrawal from a $49 billion bid for Anglo American, which was rejected multiple times.
As the demand for copper increases, driven by its essential role in the energy transition, major miners are increasingly opting to acquire existing assets rather than develop new mines, due to rising costs and prolonged regulatory approval timelines. Shares of both companies fell 1% in a generally downbeat market.