BUYOUT BID ANALYSIS
Gwede Mantashe vents his displeasure over BHP’s unsolicited mega merger offer to Anglo
In comments to the Financial Times and Bloomberg, Mineral Resources and Energy Minister Gwede Mantashe signalled that he is less than thrilled with BHP's bid for Anglo American - minus most of its South African assets.
The mega merger proposal by the world’s biggest mining company, BHP, to acquire Anglo American — minus most of its South African assets — does not have the blessing of Mineral Resources and Energy Minister, and ANC heavyweight, Gwede Mantashe.
“I wouldn’t support it. I don’t think Anglo will agree to that. I wouldn’t if I was on the board,” Mantashe told Bloomberg.
In comments to the Financial Times (FT), Mantashe — who stressed he was not giving the official government position — said South Africa’s experience with BHP had been “not positive”, as it triggered capital flight from the country.
“What we saw is that it dumped coal and then created a small company called South32, which is now marginal,” the FT quoted him as saying.
BHP, the world’s biggest mining company, had made an unsolicited all-share merger proposal for Anglo with a clear eye on the target’s coveted South American copper assets.
Read more in Daily Maverick: BHP is keen on Anglo’s global copper assets without the risky SA baggage
The Department of Mineral Resources and Energy had not responded to Daily Maverick’s requests for comment at time of publishing.
The proposed deal would pointedly exclude Anglo’s main remaining South African assets — Anglo American Platinum (Amplats) and Kumba Iron Ore — and is hardly a vote of confidence in the country’s mining sector. This might explain why Mantashe is seeing red.
That doesn’t mean the deal won’t get the green light.
If the deal is accepted by Anglo, it will face regulatory hurdles in numerous jurisdictions, including South Africa presumably.
But on the surface, it does not seem like a vexed issue for the Competition Commission if Amplats and Kumba are unbundled.
And the government does not have voting power to stop the deal. The Public Investment Corporation (PIC), which manages the pension funds of South Africa’s public servants, holds only about 7% of Anglo.
There is no magic handbrake which Mantashe can engage to stop a deal involving two companies that have their primary listings outside of South Africa.
Then there is the matter of the 29 May elections, which most polls suggest will see the ANC drop below the 50% mark for the first time since the dawn of democracy in 1994. Mantashe may or may not be the minister of mineral resources and energy in a few weeks’ time.
Against this uncertain political backdrop, comments by almost all South African ministers at this time must be taken with a massive dose of salt. DM
As much as I have my 2 cents on Mantashe promoting ANC interests above those of the country during state capture,the origin countries have been hostile with South Africa for it’s stance on the genocide in Palestine and it’s response to Russia’s war which is unfounded because Ukraine by their own admission is fighting a NATO war and Israel even by lack of admission is commiting a NATO genocide in Rafah at the moment.
We will see a lot of shift in the business world, more especially on colonial and apartheid established businesses, as they directly financed the state machinery, that was evident on the structure of the chamber of mines during those times where people of colour and women were not allowed reserved job levels and work based on gender and race.
Lest we forget.
Gwede, BHP don’t want Amplats and Kumba. It will stay with the current shareholders. Why get your panties in a twist? Still an indictment against the ANC’s economic mess-up that overseas investers don’t want SA companies. Kumba is cutting production to reduce stockpiles because Transnet can’t get the ore to the ports! SARS not getting taxes on lucrative exports. Incompetent fools!
Who cares what you think Gwede!
Luckily head office is in London and they don’t have many assets left in South Africa.
Well done Gwede, this is all your hard work paying off.
Well said. Mantashe is part of the reason for the capital flight out of South Africa.
Another interference by Gwede – when will we be rid of the man.
I was thinking what value this article and its information brings to the table.
1) I’m not sure Mr Mantashe (and many of his comrades) have sufficient knowledge or understanding of the concepts he comments about.
2) It is Mr Mantashe (and many of his comrades) that have brought the country to the state that it is in at present.
Why is this newsworthy?
Mantashe’s value surely is somewhere between nothing and zero
It is highly newsworthy in the sense that DM is alerting us to the fact that, again, the ANC is interfering in business about which its knowledge is zero.
The odious little troll can take much of the credit for the contraction of the mining industry in SA and even more for making us the polecat of mining investment destinations. No doubt the numpties in the mining unions and the glorious liberation movement’s voting fodder will blame it on WMC though.
What an absolute idiot! He alone with his abominable and mentally-challenged anc colleagues have engineered this state of affairs in our mining industry (doesn’t just stop there) where disinvestment in SA is encouraged, let alone attracting new investment. Punitive labour laws, nefarious and pathetic BEE and equity requirements, energy risks, adherence to failed communist ideology, crime, lack of services etc. are the order of the day. And now he cries foul when those who can, make other plans in order to survive and ensure their wellbeing. This idiot along with many of his vile comrades should be tried for high treason to this country!
You can ignore reality, but can not ignore consequences of ignoring reality… These Muppets live in lalaland and then they all get surprised when reality bites. Less words spent on cadres, the better
Indeed. Mantashe and his crew have been getting high on their own supply for 30 years in an environment where there have been no consequences for their arrogance and ignorance because they made the rules to suit themselves. Sadly for them they squandered the goodwill of the Madiba era and now the rest of the free world is waking up to the fact that they are nothing but big stinky fish in a rapidly shrinking fetid pond and are treating them accordingly. Sadly for us were along for the ride thanks to the muppets who insist on keeping them in power.
I wonder why he wonders why BHP wants to dump the SA assets – where has the man been for the last 30 yrs! They still don’t click that BEE policies are killing this country’s economy – or maybe they do and just don’t care!
I am not sure what Gwede was to say is relevant. Anglo American is no longer a South African company and BHP doesn’t want the SA assets anyway. The ANC through bureaucracy has killed the local mining industry.
The man is fool. This is how the world works. With poor delivery on electricity, water, roads and harbours, the poor performance of the SA companies lies squarely at Mantaches party’s door. PIC would probably be better served, profit wise, with Anglo being folded into BHP.
Interesting, now comrade Gwede has the opportunity to buy Anglo’s shares and nationalise these mines as a true communist will do. It is a reminder of the Chinese curse – may you get what you wish for.
Do you think Minister Mantashe that your contributions to the sourcing of alternative energies for South Africa has been that “positive”?