May 01, 2024 10:11 GMT
Anglo American (Baa2/BBB): Tax Considerations
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• Breakingviews have a piece out on the potential acquisition of Anglo by BHP: https://www.reuters.com/breakingviews/anglo-breaku...
• They see Anglo’s sum of the parts valuation at around $49bn; BHP’s proposed offer was around $39bn.
• They assume PV of synergies around $4bn using sell side estimates.
• The most interesting point is that divesting the South African assets could incur a $2bn capital gains charge.
• This remains a complicated deal and both sides may struggle to agree on a price.
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