Anglo American (AAL.L) was encouraged by key shareholders, including BlackRock (BLK.N), to continue talks with BHP Group (BHP.AX) regarding its proposed £38.6 billion ($49.18 billion) mining merger, according to a source familiar with the matter who spoke to Reuters on Saturday.
BHP, the world’s largest listed mining group, now has until May 29 to make a firm bid for Anglo American.
If BHP does not submit a bid by this date, it will be required to wait at least six months before making another attempt, following a one-week extension granted under UK takeover rules on Wednesday.
BlackRock was among several investors urging meaningful negotiations with BHP, as first reported by the Financial Times.
Additionally, Ninety One and Sanlam Investments, two other major shareholders, supported the decision to extend talks despite concerns about a deal structure that necessitates Anglo to spin off its stakes in South African platinum and iron ore units, the newspaper noted.
Ninety One and Sanlam Investments did not respond to Reuters’ request for comment.
BlackRock, a U.S.-based asset manager, holds a 9.6% stake in Anglo and is also a BHP shareholder, according to LSEG data.
BHP intends to maintain the structure and value of its latest takeover proposal, focusing on addressing Anglo’s concerns regarding execution risks over the next week, Reuters reported on Thursday.
The Financial Times added that individuals familiar with BHP’s strategy indicated there was room only for “smaller, creative structures to better share the risks.”
However, sources close to Anglo, cited by the newspaper, insisted that the structure must be modified or BHP should increase its offer.
Anglo American declined to comment on the Financial Times report, while BHP Group and BlackRock did not respond to requests for comment.