Mining giant Anglo-American rejects BHP Group's $39 billion takeover offer

U.K.-based mining giant Anglo American has rejected a 31 billion pound ($39 billion) takeover offer from BHP Group, saying it significantly undervalues the company and its growth potential. Anglo American said Friday that its board unanimously rejected the bid from BHP, which was announced a day earlier.

The deal would create the world’s largest copper miner as the transition to renewable energy drives demand for the metal. “The BHP proposal is opportunistic and fails to value Anglo American’s prospects,” Anglo American said in a statement to the London Stock Exchange.

Anglo American’s shares rose 16% to 25.60 pounds on Thursday in London trading. BHP said Thursday that the deal would boost its production of copper as demand for the metal soars amid the shift to clean energy.

Copper is widely used in electric vehicles, batteries and charging stations. The combination would also increase BHP’s holdings of potash, a widely used fertilizer, and coking coal used in steel production.