The 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” exchange of shares to its British competitor Anglo American, as confirmed by this company.

In a statement, Anglo American has confirmed that it has received “an unsolicited, non-binding and highly conditional combination proposal” from BHP Group Limited without providing further details about the potential transaction.

The proposed proposal involves a full share offer for Anglo American by BHP and would be 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.

In this sense, the British company has indicated that, currently, its board of directors is reviewing the proposal with its advisors, although it has warned that there can be no certainty that no offer will finally be made or its terms.

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

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