Reported 5 months ago
JPMorgan Chase & Co. analysis warns that if BHP Group's proposed takeover of Anglo American Plc goes through, it could result in a $4.3 billion outflow from South Africa, potentially weakening the rand. The proposed deal involves Anglo distributing its holdings in South African iron ore and platinum units to shareholders, prompting developed-market investor index funds to sell the unbundled stocks. Anglo has rejected BHP's $49 billion bid but agreed to discussions, and JPMorgan predicts downside risk for the share prices of Anglo American Platinum Ltd. and Kumba Iron Ore Ltd. in the event of a successful deal.
Source: YAHOO