(Reuters) – Mining giant Rio Tinto (NYSE:) was considering a bid to buy British miner Anglo American (JO:), which is currently a takeover target of BHP Group (NYSE:) for $39 billion, Australian Financial reported on Friday. Review.
Rio’s management “has not ruled out the possibility of playing for part or all of the mining group and has continued to study the current situation,” AFR reported, citing sources close to Rio.
The report does not mention why Rio did not make an offer, but said there was no suggestion that Rio was going to make an alternative offer. Rio declined to comment on the report.
Anglo rejected BHP’s offer, saying it was opportunistic and significantly undervalued the British company. BHP has until May 22 to make a formal offer under UK takeover rules.
Glencore (OTC:) is also exploring options for a possible approach to Anglo, Reuters reported earlier this month, a move that could spark a trade war.
“Our policy is that we do not speculate or comment on mergers and acquisitions activity,” Rio Chairman Dominic Barton said when asked at a shareholder meeting last week whether the company was considering a rival bid.
BHP and Rio work closely together at the Escondida and Solution Copper mines, in which they both have interests.
Rio should not go against BHP and should instead look to smaller lithium producers, said Daniel Sullivan, portfolio manager at global natural resources fund Janus Henderson Investors, which owns Rio shares.