Closing post
Time to recap….
Anglo American has rejected a second takeover approach by Australian rival BHP that values the London-listed mining company at £34bn.
BHP said that Anglo’s board had not engaged with its offer, which came after an initial £31bn offer was also rejected last month. Anglo rejected the second offer on Monday, BHP said.
A takeover of Anglo, a member of the FTSE 100, would create a global player in markets for commodities including copper, potash, iron ore and metallurgical coal used for steelmaking. Copper is in high demand as a crucial raw material in the low-carbon energy transition because it is essential in manufacturing components for renewable energy projects and electric vehicles.
Anglo American had said the initial offer “significantly undervalues” the company, but some shareholders have indicated they would be willing to consider a higher offer.
BHP said it was disappointed by Anglo’s failure to engage…
…but Anglo insisted that the structure of the deal was ‘highly unattractive’, and that it would provide a detailed investor update tomorrow.
In other news:
UK housebuilding slumped by 20% in the first quarter of this year, adding to the challenge of moving into the housing ladder.
Affordability problems are forcing more young people take out ultra-long mortgages, which will run until they are in retirement….
…while renters are becoming more affluent as lower-income families are priced out of the market.
The UK government has trimmed its stake in NatWest to below 27%, ahead of a share sale to the public this year.
Output across the UK picked up in April, lifting hopes that the economy had turned a corner.
The former UK chancellor Nadhim Zahawi is to become the chair of Very Group, the online retailer owned by the billionaire Barclay family, days after announcing that he would step down as a Conservative MP at the next general election.
The Japanese tech investor SoftBank made a profit for the second consecutive quarter as it tries to turn its performance around before big planned investments in artificial intelligence.
Is renting becoming the preserve of the rich?
Lower income tenants are being priced out of the rental market as the cost of renting increases, according to analysts Capital Economics.
Households in the private rental sector are getting richer, and not because people are “hutching” up, or deciding to couple up and rent together, boosting average incomes.
Rents are shooting up because of stronger demand from two sources: first time buyers are having to rent for longer because mortgage rates are so high, and net migration has sharply increased, tripling compared to rates in the 2010s. Eight of ten new migrants rent in the private sector, the ONS has found.
Analysts conclude that this is one reason for the rising number of people on the waiting list for social housing, in temporary accommodation or sleeping rough.
Waiting lists for social housing rose to a decade high of 1.3 million in March this year, while there were similar increases in the number of people rough sleeping or in temporary accommodation.
UK rents have risen faster than usual since 2022, eclipsing UK wage growth. Since 2022, pay growth has increased at the average annual rate of 5% a year while rents have shot up by 12% a year.
