Bets are off over BHP returns for Anglo with Mike Henry exit

A purchase of Anglo American is now thought to be off the agenda for BHP. Picture: AFP

The anticipated announcement by the end of the year of BHP’s boss Mike Henry has many in the market betting that a deal for the mining giant to buy Anglo American will be off for the foreseeable future.

The chatter is that the mining giant is keen for its next chief executive to be a female, with chief financial officer Vandita Pant and head of Australia Geraldine Slattery both the top internal picks.

Another possibility is chief technical officer Johan van Jaarsveld.

This is amid talk that Mr Henry’s time will shortly be up at BHP and is set to announce he will stage an exit, likely by the end of the year.

All the talk within the ranks of the mining giant is that it fiscal restraint is currently top of mind, which likely points to deal activity being off the agenda for the short term.

BHP launched a $40.5bn play for the assets of rival Anglo American last year.

At that time, Mr Jaarsveld, who had run strategy and development for eight years was moving into his new role, making way for Catherine Raw.

At the time, Anglo American rejected BHP’s initial bid for the majority of its portfolio, creating expectations that the $215bn, Australian-listed BHP would return to the negotiating table with a higher offer.

But global economic volatility linked to tariffs introduced by US President Donald Trump has sparked fears surrounding falling commodity prices, particularly iron ore, as the move eventually leads to less demand from China.

Mr Henry, a Canadian chemistry graduate, was appointed BHP’s chief executive in January 2020 after joining the business in 2003.

BHP’s share price, at $37.72, is down almost 5 per cent since the start of the year, taking its market value to $185bn.