South African politics complicates BHP’s Anglo American discussions

BHP and Anglo American are split over how much value destruction could come from South African government demands on the company should the Australian miner’s $75 billion takeover proceed and major local assets be divested.

Complicating matters is the South African general election, where the African National Congress, the political party of Nelson Mandela, will attempt to extend its three decade grip on power at a poll on Wednesday. That coincides with the deadline for BHP to make a formal offer to acquire Anglo, which granted a seven-day extension last week.