BHP rejected in A$8.4B takeover bid for Australian miner Oz Minerals (NYSE:BHP)

Reclaimer Stacker and Stockpile on Iron Ore Mine Site

CUHRIG/E+ via Getty Images

BHP’s (NYSE:BHP) A$8.4B (~US$5.8B) takeover offer Oz Minerals (OTCPK:OZMLF) was rejected early Monday as significantly undervaluing the Australian-based copper and gold mining company.

Oz Minerals (OTCPK:OZMLF) said it received the unsolicited proposal on August 5 to acquire its shares for A$25/share (US$17.30), a 32% premium to the stock’s Friday closing price in Sydney.

Oz Minerals (OTCPK:OZMLF) operates the West Musgrave project in Western Australia which includes nickel-copper deposits, while BHP (BHP) owns the Nickel West mine-to-market business in the state.

BHP (BHP) recently reported Q4 production of iron ore from Western Australia fell slightly from a year ago but said it expects to increase production of commodities in the year ahead.

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