SOUTH Africa has rejected commentary that BHP’s takeover proposal for Anglo American represented a vote of no confidence in the country.
“Some analysts and sections of the media have sought to portray this market activity as a vote of no confidence in South Africa,” according to a statement issued by The Presidency on Monday reported by News24 and BusinessLive.
“The Presidency rejects the notion that a commercial approach by BHP Billiton equals to a hostile environment for investors,” it added.
In terms of BHP’s proposal it will first unbundle Anglo’s shares in Anglo American Platinum and Kumba Iron Ore, both listed on the JSE and operating exclusively in South Africa. BHP said it would conduct a review of De Beers assuming its takeover was successful.
South Africa’s infrastructural problems and jurisdictional risk are thought to be major considerations in BHP’s takeover structure although – in South Africa’s defence – the Australian miner doesn’t currently have a presence in platinum group metals on which to build, while excluding Kumba from its takeover could help reduce anti-trust claims.
Presidency spokesperson Vincent Magwenya was cited by BusinessLive as saying the joint initiative by the presidency and business lobby groups to resolve crime and corruption was helping to improve the country’s investment reputation.
“This partnership should reassure both local and foreign investors that considerable resources and expertise are being leveraged in government and in the private sector to curtail crime, continue improving the functionality of our ports and enable an investor and societal environment that fosters inclusive economic growth and prosperity,” he said.
BHP’s proposal came under fire from mineral resources & energy minister Gwede Mantashe, who told Business Times at the weekend that the mining giant — which was the product of a merger between Australia’s BHP and South African-owned Billiton two decades ago — had never done anything for South Africa.
If he could have stopped it he would have, Mantashe said.
