{"id":1748,"date":"2024-05-20T10:01:49","date_gmt":"2024-05-20T10:01:49","guid":{"rendered":"https:\/\/www.innov8fs.co.za\/blog\/?p=1748"},"modified":"2026-03-18T11:46:07","modified_gmt":"2026-03-18T11:46:07","slug":"slap-in-south-africas-face","status":"publish","type":"post","link":"https:\/\/www.innov8fs.co.za\/blog\/2024\/05\/20\/slap-in-south-africas-face\/","title":{"rendered":"Slap in South Africa\u2019s face"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1749\" src=\"https:\/\/www.innov8fs.co.za\/blog\/wp-content\/uploads\/2024\/05\/BHP-768x432-1.jpg\" alt=\"\" width=\"768\" height=\"432\" srcset=\"https:\/\/www.innov8fs.co.za\/blog\/wp-content\/uploads\/2024\/05\/BHP-768x432-1.jpg 768w, https:\/\/www.innov8fs.co.za\/blog\/wp-content\/uploads\/2024\/05\/BHP-768x432-1-300x169.jpg 300w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/p>\n<p>BHP Group\u2019s insistence that it does not want South African assets as part of a deal to buy Anglo American shows how toxic the local business environment has become.<\/p>\n<p>In April, BHP Group made a takeover approach for rival Anglo American, a move that could spark the biggest shakeup in the industry in over a decade.<\/p>\n<p>Anglo American rejected the offer, after which BHP made an improved takeover offer, which valued the mining company at about \u00a334 billion (R781.85 billion).<\/p>\n<p>Anglo also rejected the second offer and announced a big overhaul to fend off BHP\u2019s takeover approach.<\/p>\n<p>It will exit diamond, platinum and coal mining in a restructuring designed to turn the 107-year-old miner into a copper giant.<\/p>\n<p>One thing that stood out in both offers was BHP\u2019s stipulation that Anglo must spin off its South African units before the acquisition.<\/p>\n<p>Investment expert Piet Viljoen said it showed that South Africa is not an attractive investment destination for global companies.<\/p>\n<p>Viljoen said BHP Group\u2019s insistence on unbundling some South African assets before a deal can be done sends a strong signal about the country.<\/p>\n<p>\u201cA foreign entity doesn\u2019t want to invest in a country where it has to give up 30% of the economic proceeds to a BEE partner for nothing in return,\u201d he said.<\/p>\n<p>Investigative journalist and author Pieter du Toit said inside information from Anglo American suggests there are a few reasons why BHP does not want South African assets.<\/p>\n<ul>\n<li>You must give part of your shareholding away because of BEE requirements.<\/li>\n<\/ul>\n<ul>\n<li>The communities around the mines are challenging. Mine owners are burdened with the socio-economic problems of these communities.<\/li>\n<\/ul>\n<ul>\n<li>You must work with Transnet, which is dysfunctional, to get your products to harbours.<\/li>\n<\/ul>\n<ul>\n<li>Eskom\u2019s collapse means local mines have to produce their own power to function optimally.<\/li>\n<\/ul>\n<ul>\n<li>They have to fight criminal elements like the construction mafia demanding a slice of their pie.<\/li>\n<\/ul>\n<p>\u201cA mining giant like BHP Group does not want any of these problems. It, therefore, wants to buy Anglo, but they want nothing to do with South Africa,\u201d he said.<\/p>\n<p>\u201cThis is a screaming indictment on how the ruling ANC has mismanaged the economy over the last twenty years.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>BHP Group\u2019s insistence that it does not want South African assets as part of a deal to buy Anglo American shows how toxic the local&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1748","post","type-post","status-publish","format-standard","hentry","category-innov8ions"],"_links":{"self":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/1748","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/comments?post=1748"}],"version-history":[{"count":1,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/1748\/revisions"}],"predecessor-version":[{"id":1750,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/1748\/revisions\/1750"}],"wp:attachment":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/media?parent=1748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/categories?post=1748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/tags?post=1748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}