In Chile, Anglo American owns Los Bronces and el Soldado, and has a stake at the Inés de Collahuasi mining company. In Peru, it owns the Quellaveco mine. BHP is a partner in the Antamina project in Peru, while in Chile it owns Spence, Escondida and Cerro Colorado fields, and it also has operations in Brazil and Arizona, USA.

Anglo-Australian mining group BHP, the world's largest company in the sector, has presented a merger proposal through a "non-binding and highly conditional" share exchange to its British competitor Anglo American, valuing the latter at £31.1 billion ( US$ 38.71 billion), according to information sent by the companies.

If this initiative advances, the merged companies would become the world's largest copper producer.

In Chile, Anglo American owns Los Bronces and el Soldado, and has a stake at the Inés de Collahuasi mining company. In Peru, it owns the Quellaveco mine. BHP is a partner in the Antamina project in Peru, while in Chile it owns Spence, Escondida and Cerro Colorado fields, and it also has operations in Brazil and Arizona, USA.

Anglo American shares started this Thursday's session on the London Stock Exchange rising by nearly 14% after confirming receipt of the BHP proposal.

In a statement, Anglo American confirmed before the opening of markets in Europe that it had received “an unsolicited, non-binding and highly conditional combination proposal” from BHP Group Limited without offering further details about the potential transaction.

The proposal involves a full share offer for Anglo American by BHP, preceded by separate spin-offs by Anglo American of all its stakes in Anglo American Platinum Limited and Kumba Iron Ore Limited to Anglo American shareholders.

BHP has specified that its proposal contemplates the delivery of 0.7097 BHP shares for each ordinary share of Anglo American in addition to the distribution of Anglo Platinum and Kumba shares among the shareholders of the British company in direct proportion to their effective share in said companies.

Taking as a reference the market closing prices of last Tuesday, the proposed exchange would be equivalent to nearly 25.08 pounds for each ordinary share of Anglo American, valuing the company's market cap at 31.1 billion of pounds.

Likewise, the Anglo-Australian mining giant has stressed that the proposal “is not binding” and is subject to the usual conditions, including the completion of due diligence to BHP's satisfaction.

In this sense, Anglo American has indicated that its board of directors is currently reviewing the proposal with its advisors, although it has warned that there can be no certainty that any counter-offer will ultimately be made, or its terms.

As such, it has recommended Anglo American shareholders not to take any action.

For its part, BHP has argued that its offer would bring together the strengths of BHP and Anglo American “in an optimal structure” and the combination would generate significant synergies, which would improve profitability and value for Anglo American shareholders.

Under UK regulations, BHP must announce on May 22 at latest its firm intention to make an offer for Anglo American, or announce that it has no intention to make such offer at all.